Business News
Aradel Commits $20 Million to Chappal Energies Acquisition
Aradel, on May 8, announced its commitment to allocating $20 million in restricted cash for the acquisition of stakes in Chappal Energies.
The company’s planned acquisition of Chappal Energies is a part of its ambitious plan to invest in high-upstream assets across Africa.
In December 2024, Aradel Holdings announced plans to acquire a 5.14% stake in Chappal Energies Mauritius Limited.
Before that, Aradel announced plans to acquire Nigeria’s Olo and Olo West fields from TotalEnergies and NNPC for $16 million, plus $3.5 million in deferred payments.
Key Assets Acquired by Aradel in the Chappal Energies Deal
By acquiring a 5.14% stake in Chappal Energies for $20 million, Aradel will have stakes in several significant oil and gas assets in Nigeria, including OML 128 and OML 129.
OML 128
In December 2024, Chappal Energies bought Equinor’s Nigerian operations, including a 53.85% stake in OML 128 and a unitized 20.21% interest in the Agbami oil field for $1.2 billion. Equinor sold its 53.85% stake amid its exit from Nigeria.
The Agbami field is one of the largest deepwater discoveries in Nigeria, with proven reserves of 900 million barrels.
Therefore, with Chappel Energies having a 53.85% stake in OML 129, Aradel is interested in a 5.14% stake in Chappel Energies.
Aradel’s interest in Chappal Energies, which holds a 53.85% stake in OML 128, will give it indirect access to one of Nigeria’s most valuable oil assets.
The stable oil production revenue from OML 128 will benefit Aradel.
OML 129
Chappal Energies also holds stake in OML 129, which contains substantial undeveloped gas reserves. The Nnwa, Bilah, and Sehki gas discoveries within OML 129 offer Aradel the opportunity to tap into Nigeria’s growing gas market. The country’s vast gas reserves, 216 TCF, will play a significant role in the domestic and global gas market in the near future.
| Attribute | OML 128 | OML 129 |
| Location | Deep offshore | Deep offshore, adjacent to OML 128 |
| Water Depth | ~1,500 meters (ultra-deepwater) | ~1,400–1,800 meters (ultra-deepwater) |
| Primary Resource Type | Oil | Gas (undeveloped fields) |
| Key Asset | Agbami Oil Field | Undeveloped: Nnwa, Bilah, and Sehki gas |
| Estimated Reserves | 900 million barrels | Trillions of cubic feet (TCF) of gas |
| Production Status | Fully developed and producing since 2008 | Not yet developed; exploration and evaluation ongoing |
| Past Operator | Equinor (via ENEC), in partnership with Chevron, NNPC | Equinor (via ENEC), exploratory asset |
| Stake Acquired by Chappal Energies | 53.85% interest | Full control of ENEC’s interest |
| Strategic Importance | Revenue-generating oil production | Long-term gas development potential |
Chappal Energies also entered into a Sale and Purchase Agreement (SPA) with TotalEnergies to acquire its 10% stake in the Shell Petroleum Development Company (SPDC) Joint Venture. In July 2024, Chappal bought TotalEnergies’ 10% minority share in SPDC JV for $860 million.
Strategic Importance for Aradel’s Acquisition of Chappal Energies
By acquiring a stake in Chappal Energies, Aradel wants to diversify its portfolio by gaining access to high-producing, revenue-generating fields like OML 128.
The investment in Chappel Energies will allow Aradel to deepen its expertise in gas operations, primarily through exposure to the Nnwa-Doro gas field and the SPDC JV assets.