In December 2024, Chappal Energies completed what looked like a landmark moment for Nigeria’s indigenous oil sector. The company acquired Equinor’s entire Nigerian portfolio for up to $1.2 billion, taking control of a 53.85 per cent interest in OML 128 and a 20.21 per cent stake in the Agbami field, operated by Chevron. Less than two years later, it is fighting for survival.
By April 2026, Chappal had accumulated $430 million in bank debt. Creditors including Standard Bank, Rand Merchant Bank, and Mauritius Commercial Bank issued formal default notices. The company still owed Equinor over $100 million in deferred payments it could not meet.
A planned $860 million acquisition of TotalEnergies’ SPDC stake collapsed when the Nigerian Upstream Petroleum Regulatory Commission cancelled it after Chappal failed to raise the required funds.
Then the founder was arrested. The EFCC detained Ufoma Joseph Immanuel in May 2026 on suspicion of forgery. He has been in a Lagos prison since.
While in custody, Immanuel fought a parallel battle over control of the company. A minority shareholder fund called R28, chaired by businessman Adebisi Adebutu, launched a $100 million rights issue to inject emergency capital and prevent bankruptcy.
Immanuel sued in Mauritius and escalated to the London Court of International Arbitration to block the move, fearing his 34.5 per cent stake would be diluted. Both legal attempts failed.
R28 is now moving toward dominant control. British restructuring expert Michael Humphries is serving as interim CEO.
A lifeline has emerged through oil trader Trafigura, which provided pre-financing revenue advances via a crude lift from the Agbami field. Chevron also plans infill drilling at Agbami for 2027 and 2028, and NUPRC has approved a development plan for the deepwater Nnwa-Doro field, providing long-term production optionality if the company stabilises.
The Chappal situation captures a structural challenge running through Nigeria’s divestment era.
Yes, international oil majors are selling, and Nigerian companies are buying. But acquiring the asset and sustaining ownership are two entirely different problems.
