Equinor sells assets worth up to $2 billion in Nigeria and Azerbaijan

Equinor announced on Monday that it had completed the sale of its assets located in Nigeria and Azerbaijan, for up to a $2 billion total. This marked the end of the Norwegian oil company's presence in the two countries, which lasted more than 30 years.

The group stated that the divestments announced in 2023, and completed recently, would boost cash flow for the fourth quarter. They were also in line with Equinor’s strategy of optimising its international portfolio.

The company stated that the exits would allow investments to be made in countries where Equinor could add the most value. It also allows the company to build a stronger international portfolio.

Equinor previously stated that it planned to increase its global output by 100,000 barrels equivalent per day by 2030. This will be achieved by bringing new fields into production in Brazil, Britain, and the United States.

Equinor has sold assets in Nigeria to Chappal Energies, which includes a 20.21 percent stake in the Agbami Oil Field operated by Chevron. The sale was for $1.2 billion. $710 million of that amount came in cash, and the rest in contingent payments.

The company didn't say what market prices or other factors might affect contingent payments.

It sold a 7.27% share in Azeri Chirag Gunashli field (ACG), a 8.71% share in Baku-Tbilisi Ceyhan (BTC), and a 50% interest in Karabagh to Azerbaijani SOCAR, and India ONGC. The total amount was $745 million.

During the first quarter of 2024, Equinor produced an average of 24,600 barrels of oil-equivalent per day in Azerbaijan. This was followed by a production of 17,700 boeds per day in Nigeria. (Reporting and editing by Terje Solsvik, with Nerijus Adomiaitis)

(source: Reuters)