BAKU, Azerbaijan, December 9. Equinor has officially exited its operations in Azerbaijan and Nigeria, concluding transactions on November 29 and December 6, respectively, after over 30 years of business in the two countries, Trend reports.
The divestment aligns with Equinor's strategy to streamline its international portfolio, focusing on competitive projects to ensure long-term production and profitability. Philippe Mathieu, Equinor’s executive vice president for international exploration and production, emphasized the strategic significance of the exits: “With these exits, we realize value and execute on our strategy, enabling us to deepen investments where we can add the most value.”
The sale of Equinor’s Azerbaijan portfolio fetched a total cash consideration of $745 million, while the Nigerian assets brought up to $1.2 billion, including a purchase price of $710 million and additional contingent payments.
Mathieu acknowledged the legacy of Equinor’s presence in Azerbaijan and Nigeria, expressing gratitude to employees, partners, and suppliers for their contributions over the decades. “Together, we have created significant value for Equinor and society at large. I extend my sincere thanks to everyone involved and wish our teams well as they transition to the next phase of their professional journeys,” he said.
The divestments, first announced in 2023, form part of Equinor’s broader effort to optimize its oil and gas portfolio. These moves enable the company to focus on key regions, ensuring a more robust and targeted international presence.
During the first three quarters of 2024, the assets in Azerbaijan and Nigeria averaged 24,600 and 18,700 barrels of oil per day in equity production, respectively. The transactions are expected to positively impact Equinor’s cash flow for the fourth quarter of 2024, bolstering its financial outlook.
As part of its long-term strategy, Equinor projects an average post-tax cash flow of $20 billion annually through 2035 from oil, gas, and trading. The international upstream segment remains crucial to this vision, with a 50% increase in cash flow anticipated by 2030.