Equinor ASA EQNR has finalized the sale of its assets in Nigeria and Azerbaijan for a total consideration of up to $2 billion, marking its exit from the two countries after a presence of three decades. These divestments, announced in 2023 and completed recently, align with Equinor's strategy to streamline its international operations.
The Norwegian energy giant stated that the proceeds from these transactions would enhance its fourth-quarter cash flow, enabling reinvestment in regions where the company expects to maximize value.
In Nigeria, Equinor sold its 20.21% stake in the Agbami oil field, operated by Chevron, to Chappal Energies. The transaction is valued up to $1.2 billion, comprising $710 million in upfront cash and contingent payments based on future conditions. The Agbami field is one of Nigeria's largest deepwater projects, and the divestment reflects Equinor’s focus on reshaping its international portfolio for enhanced profitability and strategic alignment.
In Azerbaijan, Equinor divested a 7.27% interest in the Azeri Chirag Gunashli field, an 8.71% stake in the Baku-Tbilisi-Ceyhan pipeline and a 50% interest in the Karabagh project. These assets were sold to SOCAR, Azerbaijan’s state oil company, and India’s Oil and Natural Gas Corporation for $745 million.
During the first three quarters of 2024, Equinor’s average net production was 24,600 barrels of oil equivalent per day (boed) in Azerbaijan and 17,700 boed in Nigeria, highlighting the significance of these regions in the company’s previous international output.
Equinor’s exit from Nigeria and Azerbaijan align with its long-term plans to increase international production by 100,000 boed within 2030. The company aims to achieve this growth by developing new fields in high-potential regions such as Brazil, the United Kingdom and the United States.
Equinor’s management emphasized that the divestments will enhance its ability to concentrate resources on core areas, building a more robust and focused portfolio that aligns with future growth and sustainability objectives.
EQNR’s Zacks Rank & Key Picks
EQNR currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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