Equinor Exits Nigeria and Azerbaijan in $2B Oil and Gas Assets Sale

Equinor has closed transactions exiting the upstream businesses in Azerbaijan and Nigeria, with a total estimated consideration of up to $2 billion.

After more than 30 years as a business partner in Azerbaijan and Nigeria, transactions leading to Equinor exiting the countries have now been closed on November 29, and December 6, respectively.

For the divestment of the full portfolio in Azerbaijan, Equinor will receive a total cash consideration of $745 million. The value of the transaction in Nigeria amounts to up to $1.2 billion, consisting of a purchase price of $710 million and the remainder in contingent payments.

The divestments of assets and exits from operations in Azerbaijan and Nigeria were announced in 2023 and are in line with the strategy of optimizing the oil and gas portfolio.

The total equity production from the assets in Azerbaijan and Nigeria has been on average 24,600 and 18,700 barrels of oil per day, respectively, in the first three quarters of 2024. The closing of these transactions will have a positive impact on the cash flow for fourth quarter 2024, Equinor said.

At the capital markets update in February 2024 Equinor stated the expectation to sustain an average cash flow from operations after tax from oil, gas and trading of around $20 billion through 2035. The international upstream business is key to deliver on this with expected 50% increase in the cash flow from this segment by 2030.

“Azerbaijan and Nigeria have been important countries in our international portfolio for decades. Together with partners and suppliers, we have created significant value for Equinor and society at large. I would like to thank them and our employees in Azerbaijan and Nigeria for their great work and dedication over the years and wish our people well in the transition of their professional journey.

“With these exits we realize value and execute on our strategy to focus the international portfolio, and in combination with recent acquisitions and investments in our competitive projects, we seek to sustain long-term production and profitability,” said Philippe Mathieu, executive vice president for international exploration and production in Equinor.