Equinor Realizes $2 Billion from Exits in Azerbaijan and Nigeria Upstream Businesses
Equinor has finalized transactions to exit its upstream businesses in Azerbaijan and Nigeria, realizing an estimated total consideration of up to $2 billion. These moves mark the end of more than three decades of operations in both countries and align with the company’s strategy to streamline its international portfolio and enhance long-term profitability.
The transactions, closed on November 29 in Azerbaijan and December 6 in Nigeria, underscore Equinor’s ongoing focus on optimizing its asset base. Philippe Mathieu, Equinor’s Executive Vice President for International Exploration and Production, emphasized the strategic importance of these divestments.
“With these exits, we realize value and execute our strategy to focus the international portfolio. Combined with recent acquisitions and investments in competitive projects, we aim to sustain long-term production and profitability,” Mathieu said.
In Azerbaijan, the divestment of Equinor’s full portfolio has resulted in a total cash consideration of $745 million. In Nigeria, the transaction is valued at up to $1.2 billion, comprising an upfront purchase price of $710 million and additional contingent payments.
“Azerbaijan and Nigeria have been integral to our international portfolio for decades. Alongside our partners and suppliers, we’ve generated substantial value for Equinor and society. I extend my gratitude to our teams and stakeholders for their dedication and contribution,” Mathieu added.
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These exits are part of Equinor’s broader strategy to refine its oil and gas portfolio, reallocating investments to regions where the company can create greater value. The divestments are expected to deepen Equinor’s commitment to more competitive projects and establish a robust international portfolio.
Equinor’s assets in Azerbaijan and Nigeria produced an average of 24,600 and 18,700 barrels of oil per day, respectively, during the first three quarters of 2024. The closures of these transactions are anticipated to positively impact Equinor’s cash flow for the fourth quarter of 2024.
At its Capital Markets Update in February 2024, Equinor projected an average post-tax cash flow from oil, gas, and trading operations of around $20 billion annually through 2035. The international upstream segment is expected to play a key role in achieving these goals, with a projected 50% increase in cash flow from the segment by 2030.
