Norwegian oil and gas company Equinor has completed its exit from Nigeria and Azerbaijan after finalizing the sale of its assets in both countries for up to $2 billion. This move marks the end of Equinor’s 30-year presence in these markets.

Announced on Monday, the divestments—initially revealed in 2023—are part of the company’s strategic efforts to streamline its international portfolio. Equinor stated that the exits would allow it to focus resources on countries where it can generate the most value.

Highlights of the Transactions

  • Nigeria: Equinor sold its 20.21% stake in the Agbami oil field, operated by Chevron, to Chappal Energies. The deal, valued at up to $1.2 billion, includes $710 million in cash and contingent payments based on market conditions.
  • Azerbaijan: The company divested its 7.27% stake in the Azeri Chirag Gunashli field, an 8.71% share in the Baku-Tbilisi-Ceyhan pipeline, and 50% of the Karabagh project to SOCAR (State Oil Company of Azerbaijan) and ONGC (Oil and Natural Gas Corporation) for $745 million.

Strategic Shift

Equinor plans to channel investments into regions offering greater potential for growth. The company aims to increase its international production by 100,000 barrels of oil equivalent per day by 2030, with a focus on emerging projects in Brazil, the United Kingdom, and the United States.

These divestments are expected to bolster Equinor’s cash flow in the fourth quarter, enabling the company to prioritize high-value projects.

Final Figures

Equinor’s net production in the first nine months of 2024 stood at 24,600 barrels of oil equivalent per day (boed) in Azerbaijan and 17,700 boed in Nigeria.

This move underscores Equinor’s commitment to refining its global operations while maintaining profitability and operational efficiency.

(Source: Reuters)