Lagos, Nigeria, December 10, 2024
Aradel Holdings Plc, a leading independent energy company in Nigeria, has announced the acquisition of a 5.14% equity stake in Chappal Energies Mauritius Limited (“Chappal”). This acquisition represents a strategic move by Aradel to diversify its portfolio, enhance its presence in Africa’s upstream energy sector, and strengthen its gas competencies as Nigeria seeks to position gas as a cornerstone of its energy transition.
Chappal Energies is an investment-focused energy company specializing in deep value and brownfield upstream opportunities. On December 6, 2024, Chappal acquired Equinor Nigeria Energy Company Limited (ENEC), which holds a 53.85% stake in Oil Mining Lease (OML) 128. OML 128 encompasses a unitized 20.21% interest in the Agbami oil field operated by Chevron. The Agbami field has produced over one billion barrels of oil since operations began in 2008, making it one of Nigeria’s most prolific oil fields. Additionally, Chappal will take over the operatorship of OML 129, an asset with undeveloped discoveries, including the Nnwa-Doro gas field, a significant resource with long-term potential for Nigeria’s energy landscape.
Strategic Implications for Aradel
This acquisition comes at a time when Nigeria is pushing to capitalize on its gas reserves as part of its energy diversification agenda. Aradel’s investment in Chappal aligns with this vision by granting the company indirect exposure to key assets, such as the Agbami field and the promising Nnwa-Doro gas prospect.
Moreover, this move highlights Aradel’s focus on gas development as part of its long-term growth strategy. As a major independent supplier of non-JV gas to Bonny LNG through Aradel Gas Limited, the company is well-positioned to leverage Chappal’s assets to complement its existing infrastructure.
Mr. Adegbite Falade, MD/CEO of Aradel, emphasized the significance of the acquisition, stating:
“This acquisition aligns perfectly with our strategy of diversifying our asset base, deepening our gas competences, and gaining access to offshore basins through low-risk approaches. Gas is critical to Nigeria’s energy future, and we are committed to harnessing its value for the benefit of the nation. Aradel is ready to support Chappal’s development of these resources, leveraging our proven execution capabilities to deliver impactful results.”
Potential Benefits for Nigeria’s Economy
The acquisition underscores the growing role of private sector investments in Nigeria’s oil and gas sector. By supporting the development of underutilized assets like the Nnwa-Doro gas field, this partnership could create jobs, generate government revenues, and contribute to the local economy. Additionally, developing gas resources aligns with Nigeria’s efforts to reduce carbon emissions by transitioning from oil to cleaner energy sources.
Challenges Ahead
Despite the strategic potential, challenges remain. Aradel’s success in realizing value from this investment will depend on the operational efficiency of Chappal and the successful development of assets like OML 129. Regulatory approvals, market dynamics, and geopolitical risks in the Nigerian oil and gas sector also pose potential hurdles.
About Aradel Holdings
Founded in 1992, Aradel Holdings Plc is Nigeria’s foremost integrated independent energy company, delivering sustainable energy solutions. Operating through its subsidiaries, Aradel focuses on upstream, midstream, and downstream operations, as well as gas processing and refinery projects. Its portfolio includes:
- Aradel Energy Limited: Operator of marginal oil fields and joint ventures.
- Aradel Gas Limited: Major gas supplier with a 100mmscf/d processing facility.
- Aradel Refineries Limited: Operator of a 3-train 11kbbl/day refinery producing refined petroleum products.
- ND Western Limited: Stakeholder in a key Nigerian exploration and production venture.
For further information, visit www.aradel.com.
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