Aradel Holdings has announced plans to acquire a 5.14% equity interest in Chappal Energies Mauritius Limited, a company focused on investing in high-value, established upstream energy projects across Africa.

The announcement comes nearly two months after Aradel’s debut listing on the Nigerian Exchange (NGX) at ₦702.69 per share, following over a decade of trading on the NASD OTC market.

Prior to its listing, Aradel disclosed its plans to purchase the Olo and Olo West oil fields in Nigeria from TotalEnergies and NNPC for $16 million, along with an additional $3.5 million in deferred payments.

Now, Aradel has declared its intent to expand its investment portfolio with a minority stake in Chappal Energies. This was disclosed in a filing with the NGX on December 10, 2024, which stated:

“Aradel Holdings Plc (‘Aradel’ or ‘the Company’) has entered into an agreement to acquire a 5.14% equity interest in Chappal Energies Mauritius Limited (‘Chappal’).”

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This acquisition underscores Aradel’s continued efforts to diversify its assets within the energy sector.

Background

On December 6, 2024, Chappal Energies announced its acquisition of Equinor Nigeria Energy Company Limited (ENEC), which holds a 53.85% stake in Oil Mining Lease (OML) 128. This stake includes a unitized 20.21% interest in the Agbami oil field, operated by Chevron.

Since production began in 2008, the Agbami field has produced over one billion barrels of oil, significantly contributing to Nigeria’s economy and stakeholders.

Additionally, Chappal will assume operatorship of OML 129, which encompasses key prospects and undeveloped discoveries, including Nnwa, Bilah, and Sehki.

The Nnwa discovery is part of the larger Nnwa-Doro gas field, a critical resource with the potential to make a significant impact on Nigeria’s energy landscape.

Earlier, on July 17, 2024, Chappal Energies and TotalEnergies announced a Sale and Purchase Agreement (SPA) for Chappal to acquire a 10% stake in the SPDC Joint Venture (JV).

This transaction has achieved major milestones, such as ministerial approval and NNPC’s consent to the Joint Operating Agreement. The parties are now finalizing the closing process.

CEO Comments

Mr. Adegbite Falade, MD/CEO of Aradel Holdings Plc, stated that this acquisition aligns with the company’s strategy to diversify its asset base, enhance expertise in gas, and gain access to offshore basins using low-risk approaches.

“We recognize the pivotal role of gas in Nigeria’s energy future and are pleased to expand our equity stake in this critical resource,” Falade said.

He added, “We are committed to unlocking the significant value inherent in these assets, which will greatly benefit the country. Aradel is eager to leverage its proven execution capabilities to support Chappal’s development of these opportunities.”

With Aradel’s stock currently trading at ₦466 per share, the announcement of its minority stake in Chappal Energies is expected to generate positive market interest.

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