Aradel Holdings Plc has agreed to acquire a 5.14% equity interest in Chappal Energies Mauritius Limited as part of its strategy to consolidate and expand its asset base.
This acquisition is to help Aradel achieve its objectives of diversifying its portfolio, enhancing its expertise in gas operations, and exploring offshore opportunities.
Chappal Energies
Chappal Energies, founded in 2022 and headquartered in Mauritius, specializes in acquiring and revitalizing distressed and brownfield upstream oil and gas assets. The company focuses on opportunities in Africa, with significant investments in Nigeria, particularly the Niger Delta region.
The company is led by notable oil and gas industry figures, including William Higgs as Chairman and directors Adesola Oyinlola, Ufoma Immanuel, and Victor Imevbore,
Chappal has also been on an expansion drive in recent times having recently announced the acquisition of Equinor Nigeria Energy Company Limited (ENEC) in addition to the SPA worth $860 million it signed with Total Energies in June for the acquisition 10% of the SPDC JV currently held by Total.
The company’s deal with Total Energies covers 15 oil mining leases and three gas-producing licenses, leading to the company providing 40% of TotalEnergies’ Nigeria LNG gas supply.
The company also holds a 53.85% ownership in oil and gas lease OML 128, including the unitized 20.21% stake in the Agbami oil field, operated by Chevron which has produced more than one (1) Billion barrels of oil since 2008.
As part of the company’s deal with Equinor, Chappal will also assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki) which hold major gas resources with significant value potentials.
Aradel Holdings Deal With Chappal
The acquisition by Aradel Holdings remains subject to ministerial approval, with NNPC’s consent for the Joint Operating Agreement already secured. Final completion processes and relevant notification processes are currently ongoing to ensure the deal goes through.
Commenting on the deal, the MD/CEO of Aradel Holdings, Mr. Adegbite Falade, stated that: “this acquisition is in line with diversifying our asset base, deepening our gas competences and gaining access to offshore basins using low risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource. We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities.” He concluded.
