Ashurst advises Chappal Energies on US$1.2 billion acquisition of Equinor's Nigerian business

Global law firm Ashurst has advised Chappal Energies on the acquisition of the entire issued share capital of Equinor's Nigerian subsidiary, Equinor Nigeria Energy Company Limited, including its 20.21% share of the prolific Agbami offshore oil field operated by Chevron.

Our team also represented Chappal Energies on the complex senior and junior bridge financing from a group of international commercial banks and a leading trader to fund the transaction. The up-front purchase price of US$710 million is supplemented by certain additional contingent payments. The transaction completed on 6 December 2024 and represents the latest in a series of divestments by international oil companies of their assets in Nigeria and West Africa to focus on other markets. The Ashurst team has advised, and continues to advise, on a number of these transactions.

The acquisition represents the debut transaction for Chappal Energies since its foundation by a team of Nigerian executives combining their collective experience working for international and other Nigerian players. Ashurst has supported Chappal Energies since its inception, as noted by lead partner Matthew Wood: "Working with the Chappal Energies team so closely over the past couple of years as they have achieved their founding mission has been an immense privilege for us and typifies our strategic aim of building our Africa practice with a particular focus on the leading indigenous companies. We very much look forward to continuing to build our relationship with Chappal and to further successful acquisitions and financings to come."

The Chappal Energies legal team was led by legal counsel Nneka Wood with support from Nic Kennedy and Olusegun Adeniran. The Ashurst team was led by partner Matthew Wood, supported by partner Quentin Robinson and senior associate Lester Lim Kok, together with associates Femi Omosuyi, Tomi Fadoju, Bryony Singleton, Katherine Borg, Guy Seymour and Abu-Bakr Samad. The Ashurst team also comprised specialists from across the firm's tax, disputes, debt capital markets, hedging and competition groups. Ashurst worked alongside Dentons ACAS-Law, as Nigerian counsel, and Appleby, Mauritian counsel, on all aspects of the transaction.