Aradel Plans To Acquire 5.14% Equity Stake In Chappal Energies

Aradel Holdings Plc has announced plans to acquire a 5.14 percent equity stake in Chappal Energies Mauritius Limited, marking a strategic move to diversify its portfolio and expand its presence in Africa’s upstream energy sector.

This development comes shortly after Aradel’s landmark public listing on the Nigerian Exchange (NGX) at ₦702.69 per share, following over a decade on the NASD OTC market. The company’s ongoing investment strategy has placed it in the spotlight, particularly in Nigeria’s energy landscape.

In a recent statement filed with the NGX on December 10, 2024, Aradel disclosed its agreement to acquire the minority stake in Chappal Energies, a company actively engaged in high-value upstream projects across Africa.

This follows Aradel’s recent bid to acquire the Olo and Olo West fields in Nigeria from TotalEnergies and NNPC for $16 million, with an additional $3.5 million in deferred payments. According to the Managing Director\ Chief Executive Officer (CEO) of Aradel, Mr. Adegbite Falade, the latest acquisition aligns with the company’s strategic vision to diversify its asset base, expand gas expertise, and enter offshore basins through calculated, low-risk approaches.

The acquisition is particularly significant against the backdrop of Chappal Energies’ own growth trajectory. On December 6, 2024, Chappal finalised the acquisition of Equinor Nigeria Energy Company Limited (ENEC), which holds a 53.85 percent stake in Oil Mining Lease (OML) 128, including a 20.21percent unitised interest in the prolific Agbami oil field operated by Chevron. Since production commenced in 2008, the Agbami field has produced over one billion barrels of oil, contributing immense value to Nigeria’s economy and stakeholders. Chappal also acquired operatorship of OML 129, which contains promising undeveloped discoveries, such as the Nnwa-Doro gas field, a resource with the potential to transform Nigeria’s energy sector.

Earlier in 2024, Chappal had reached critical milestones in its agreement to acquire a 10 percent stake in the SPDC Joint Venture from TotalEnergies. With ministerial approval and consent from NNPC already secured, the transaction is nearing completion. These developments demonstrate Chappal’s commitment to becoming a major player in Nigeria’s energy sector, which enhances the potential value of Aradel’s investment.

Mr. Falade highlighted the significance of these acquisitions, emphasising the critical role of gas in shaping Nigeria’s energy future. He expressed confidence in the partnership with Chappal Energies, noting that it aligns with Aradel’s ambition to unlock the value inherent in these assets. “We are committed to unlocking the significant value inherent in these assets, which will greatly benefit the country. Aradel is eager to bring its proven execution capabilities to support Chappal’s development of these opportunities,” Mr. Falade stated.

Since listing on the NGX, Aradel’s share price has fluctuated and currently trades at ₦466 per share. Analysts believe that the announcement of its minority stake in Chappal Energies, combined with its strategic positioning, could positively influence market sentiment. With a growing portfolio of high-value assets and a clear vision for Nigeria’s energy sector, Aradel is poised to solidify its role as a key player in the industry.