Equinor finalizes $2 billion asset sales in Nigeria and Azerbaijan

Equinor has finalized the sale of its assets in Nigeria and Azerbaijan for up to $2 billion, marking the end of its operations in both countries after roughly 30 years, the Norwegian oil and gas company announced on Monday.

Equinor first announced its plan to exit Nigerian operations in November 2023, bringing to a close more than three decades of activity in the country that began in 1992. The divestment, now finalized, is expected to boost cash flow in the fourth quarter of 2024, Reuters reported.

Per the company, the decision to sell its assets aligns with Equinor’s strategy to streamline and optimize its international portfolio, allowing the company to focus on higher-priority markets and opportunities.

Equinor has outlined plans to boost its international production by approximately 100,000 barrels of oil equivalent per day by 2030, with new fields in Brazil, the UK, and the US driving this growth.

As part of its portfolio optimization, Equinor sold its Nigerian assets, including a 20.21% stake in the Agbami oil field operated by Chevron, to Chappal Energies for up to $1.2 billion.

The deal includes $710 million in cash, with the remainder tied to contingent payments, though Equinor has not disclosed how factors like market prices might influence those payments.

In Azerbaijan, Equinor divested a 7.27% stake in the Azeri Chirag Gunashli (ACG) field, an 8.71% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, and a 50% stake in the Karabagh project. These assets were sold to Azerbaijan’s SOCAR and India’s ONGC for a combined total of $745 million.

Equinor’s net production in Azerbaijan and Nigeria averaged 24,600 barrels of oil equivalent per day (boed) and 17,700 boed, respectively, over the first three quarters of 2024.