Financial Energy Review
……..by Ben Ndubuwa……
Aradel Holdings Plc (“Aradel” or the Company) has announced its decision to acquire a 5.14% equity stake in Chappal Energies Mauritius Limited (“Chappal”), an energy company focused on investments in deep value and brownfield upstream opportunities across Africa. This strategic move aligns with Aradel’s goal of expanding its footprint in the energy sector, especially within the African oil and gas landscape.
Chappal recently made headlines with its acquisition of Equinor Nigeria Energy Company Limited (ENEC) on December 6, 2024. ENEC holds a 53.85% stake in Oil Mining Lease (OML) 128, which includes a 20.21% share in the Agbami oil field, operated by Chevron. Since its production began in 2008, the Agbami field has yielded over 1 billion barrels of oil, contributing significantly to Nigeria’s economy.
In addition to the Agbami stake, Chappal will assume operatorship of OML 129, which features multiple promising prospects and undeveloped discoveries, including the Nnwa, Bilah, and Sehki fields. The Nnwa discovery, part of the larger Nnwa-Doro field, holds considerable potential for gas development, further boosting Nigeria’s energy resources.
On July 17, 2024, Chappal also entered into a separate agreement with Total Energies for the acquisition of a 10% stake in the Shell Petroleum Development Company (SPDC) Joint Venture. With ministerial approval and NNPC consent already secured, the transaction is expected to close soon.
Aradel’s Managing Director/CEO, Mr. Adegbite Falade, expressed confidence in the partnership: “This acquisition is in line with diversifying our asset base, deepening our gas competencies, and gaining access to offshore basins through low-risk approaches. We recognize the strategic role of gas in Nigeria’s energy future and are excited to increase our equity holdings in this critical resource. Aradel is committed to supporting Chappal in developing these opportunities, which will bring significant value to the country.”
This acquisition underscores Aradel’s commitment to Nigeria’s energy sector and its long-term growth.
