The investments cut across oil and gas, clean energy initiatives, and infrastructural projects, according to key highlights released by the Presidential Media Centre.

Breakdown of Investments

The lion’s share of the total investment—$5.5 billion—was channelled into the oil and gas sector, showing sustained confidence in Nigeria’s hydrocarbon resources despite global energy transitions. 

Again, $400 million was allocated to the Presidential Metering Initiative, a programme designed to enhance electricity metering nationwide, tackling incessant billing inefficiencies and boosting consumer confidence.

The Clean Mobility and Cooking Program received $700 million in funding, showing the extent of focus on clean energy solutions, particularly in areas of transportation and cooking, where many Nigerians still rely on non-renewable energy sources.

Asset Acquisitions Drive Growth

A closer look at asset acquisitions revealed a dynamic year for companies in Nigeria’s energy sector:

Shell Petroleum Development Company divested assets worth $1.3 billion to the Renaissance Consortium, opening opportunities for indigenous players.

Seplat Energy made a big move, acquiring ExxonMobil’s upstream assets for $1.3 billion, strengthening its place in the energy space.

Chappal Energies recorded two major deals, acquiring assets worth $1.2 billion from TotalEnergies and $860 million from Equinor.

These transactions align with trends of international oil companies (IOCs) restructuring their portfolios to meet energy transition goals, while indigenous companies strengthen their footprint in the local market.

Advancing Solar Energy with the G5 Sahel Project

In enhancing renewable energy, Nigeria is a top participant in the G5 Sahel Desert to Power Project, the largest solar energy initiative in Africa.

The project, with a master plan cost of $10 billion, aims to generate 10 GW of solar power across 11 Sahel countries.

It is funded by the African Development Bank (AfDB) and the Green Climate Fund, backing the country’s commitment to renewable energy adoption and sustainability.

This initiative aims to largely boost electricity access in the Sahel region, combating energy poverty while reducing reliance on fossil fuels.

Nigeria had a strong 2024 for investments, innovation, and infrastructure development with an inflow of $6.7 billion into its energy sector. Balancing its rich oil and gas resources with an expanding adoption of renewable energy is the goal for sustainable energy growth.

This growth in the energy sector is expected to bolster Nigeria’s economy, create jobs, and enhance energy accessibility for millions of citizens.

The post Oil and Gas Lead with $5.5 Billion as Nigeria’s Energy Sector Attracts $6.7 Billion in 2024 appeared first on Tech | Business | Economy.

The aggregate consideration for the transaction is $860 million, with financing to be provided by a TotalEnergies company entity and/or any financial institution selected by TotalEnergies, Trafigura, and a syndicate of international banks.

The transaction is expected to close by December 31, 2024.

The acquisition includes a 10% interest in 15 Oil Mining Leases (OMLs) and two main export terminals in Nigeria, specifically the Forcados and Bonny Terminals that are part of the Shell Petroleum Development Company Joint Venture (SPDC JV).

In the joint venture, Nigerian National Petroleum Corporation Limited (NNPCL) holds a 55% stake, SPDC operates with a 30% stake, and Nigerian Agip Oil Company (NAOC) has a 5% stake.

The transaction will also see Chappal Energies acquire a 10 % participating interest in the 3 other OMLs within the SPDC JV which are mainly gas-producing (specifically OML 23, OML 28 and OML 77), while TotalEnergies will retain an economic interest in these licenses which currently account for 40% of Nigeria’s LNG gas supply. Chappal Energies will have rights to the standalone undeveloped oil reserves within these 3 OMLs.

This strategic acquisition increases Chappal Energies’ asset base and adds significant reserves to the company’s balance sheet. The portfolio includes over 40 producing fields with a network of pipelines, flow stations, processing facilities, and two major terminals.

Ufoma Immanuel, managing director of Chappal Energies, comments:

“This acquisition marks a significant expansion in the Niger Delta, thereby diversifying our Nigeria footprint between the offshore and onshore basins.

Chappal Energies becomes the first Nigerian company to execute two significant transactions within a 12-month period.

The transaction is poised to bring substantial benefits to stakeholders, including shareholders, employees, local communities, and the national economy. The closing is subject to certain conditions, including all regulatory and contractual approvals.

The post Chappal Energies To Aid Chappals 10% stake in TotalEnergies  appeared first on Tech | Business | Economy.

Equinor and Chappal Energies have entered into an agreement for the sale of Equinor Nigeria Energy Company (ENEC), which holds a 53.85% ownership in oil and gas lease OML 128, including the unitised 20.21% stake in the Agbami oil field, operated by Chevron.

Equinor has been present in Nigeria since 1992 and has played a significant role in developing Nigeria’s largest deep-water field, Agbami.

Since production started in 2008, the Agbami field has produced more than 1 billion barrels of oil, creating value for the partners and Nigerian society.

“Nigeria has been an important part of Equinor’s international portfolio over the past 30 years. This transaction realises value and is in line with Equinor’s strategy to optimize its international oil and gas portfolio and focus on core areas. Chappal Energies is a committed Nigerian-owned energy company with the ambition to develop the assets further, contributing to the Nigerian economy for years to come,” says Nina Koch, Equinor Senior Vice President for Africa Operations.

Ufoma Immanuel, Managing Director of Chappal Energies, comments: ‘We are excited to take over the baton from Equinor after three decades of enduring legacy. Value creation, environmental stewardship, and community engagement are at the heart of everything we do, and our social and development impact will be the most important measurement of our success. We are confident in our ability to make a lasting impact and are committed to fostering sustainable growth and contributing to Nigeria’s economic prosperity now and in the future.’

The closing of the transaction is subject to the satisfaction of certain conditions including all regulatory and contractual approvals.

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