Equinor has successfully concluded transactions marking its exit from the upstream businesses in Azerbaijan and Nigeria , with a total estimated value of up to USD 2 billion. After more than 30 years of presence in these countries, the operations were closed on 29 November in Azerbaijan and on 6 December in Nigeria.
Equinor optimizes its portfolio with exit of upstream businesses
This move is part of Equinor’s global strategy to optimise its international portfolio, a key step in its focus on markets where the company can generate higher long-term returns.
These exits allow us to focus even more on strategic projects that provide economic value and ensure profitable production in the long term.
Philippe Mathieu, the company’s executive vice president of international exploration and production, highlighted.
In terms of figures, the company has sold its entire portfolio of oil assets in Azerbaijan, obtaining a total consideration of $745 million. The transaction in Nigeria, meanwhile, is valued at $1.2 billion , with $710 million corresponding to the purchase price, and the remainder subject to contingent payments.
Impact on production and next strategic moves
During the first three quarters of 2024, production from these assets has been significant – an average of 24,600 barrels of oil per day in Azerbaijan and 18,700 barrels per day in Nigeria . These assets had been instrumental in the company’s energy production in the region, but the company is aligning its investments in markets with greater strategic potential.
The transactions in Azerbaijan and Nigeria will allow Equinor to increase its investments in more competitive projects, strengthening its presence in key markets where it can add significant value. Looking ahead, the company maintains its objective of generating solid cash flow to support its global expansion strategy in the coming years.
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Source and photo: Equinor
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