After GSK, Sanofi, Another Foreign Company to Leave Nigeria, Sells Shares to Local Operator

After GSK, Sanofi, Another Foreign Company to Leave Nigeria, Sells Shares to Local Operator

  • Nigeria is set to witness the exit of another company, Equinor Nigeria Energy Company
  • This follows the recent exit of GlaxoSmithKline (GSK), Sanofi-Aventis Nigeria and others
  • The company is selling its share ownership stake to Chappal Energies, a Nigerian company journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

Equinor Nigeria Energy Company (ENEC) has agreed with Chappal Energies to sell ENEC's 53.85% ownership in the oil and gas lease OML 128.

After GSK, Sanofi, another company to leave Nigeria, sells shares to local operator
The completion of the deal is subject to regulatory approval. Photo Credit: Jon Feingersh Photography Inc, Thomas Barwick
Source: Getty Images

According to a statement obtained from Equinor's website, this includes the unitised 20.21% stake in the Agbami oil field, operated by Chevron.

The deal's completion, however, according to the statement, is subject to regulatory approval.

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This comes after GlaxoSmithKline (GSK), a British healthcare and multinational biotech firm, recently left Nigeria after 51 years of operations.

The event increased the price of drugs as life-saving medicines increased by as much as 1,000%.

In a similar move, Sanofi-Aventi Nigeria, a leading French pharmaceutical company, decided to close its direct operations in Nigeria.

Equinor operated in Nigeria for 31 years

The statement pointed out that since its existence in Nigeria in 1992, Equinor has played a significant role in developing Nigeria's largest deep-water field, Agbami.

It stated that the Agbami field has created value for partners and Nigerian society by producing 1 billion barrels of oil.

Nina Koch, Equinor's senior vice president for Africa Operations, said Nigeria has been an important part of Equinor's international portfolio over the past 30 years.

She clarified, however, that the company's choice is consistent with Equinor's objective to optimise its global oil and gas portfolio and concentrate on its core competencies.

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She added that the buyer, Chappal Energies, is a dedicated energy firm owned by Nigerians with plans to expand the assets further and support the Nigerian economy for many years.

Ufoma Immanuel, Managing Director of Chappal Energies, comments expressed excitement to take over the baton from Equinor after three decades of an enduring legacy.

He expressed confidence in the company's ability to make a lasting impact and is committed to fostering sustainable growth and contributing to Nigeria's economic prosperity now and in the future.

Charles Abuede, a financial analyst noted that the CBN's directive comes at a time when the average Nigerian is grappling with heightened inflation and diminished purchasing power, particularly as the festive season approaches.

He added,

"This directive is set against the backdrop of the currency crunch experienced at the beginning of the year, which consequently exerted downward pressure on the national output in the first quarter.

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"From an economic standpoint, the policy direction is commendable, as it seeks to alleviate the financial burden associated with printing and distributing new banknotes across various banks.
"Moreover, it takes into consideration the potential inconvenience that Nigerians might face when exchanging the old notes for the new legal tender."

"We recorded N19bn losses": Guinness speaks on reported plan to exit Nigeria after 74 years reported that The management of Guinness Nigeria Plc has stated that despite economic headwinds that harmed its businesses in the most recent operating year, the company managed to scrape by against all odds.

John Musunga, its managing director and CEO, spoke at a media session over the weekend at its corporate headquarters in Ogba, Lagos state.

The company's reaction followed an earlier report that it would stop importing some international premium spirits products starting in April 2024.


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