Fri. May 30th, 2025

Move signals expansion into offshore energy markets

Aradel Holdings has earmarked $20 million to acquire a 5.14% equity stake in Chappal Energies, signaling a strategic move to diversify its asset portfolio and gain access to offshore basins. The investment contributed to a temporary decrease in the company’s operating cash flows, which fell 45.1% to N30.6 billion in Q1 2025 from N55.8 billion in Q1 2024.

“We recognize the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource,” said Aradel CEO Adegbite Falade. “We are committed to developing the significant value inherent in the assets, which will be extremely beneficial to the country.”

Chappal recently acquired Equinor Nigeria Energy Company, which holds a 53.85% ownership in oil and gas lease OML 128, including a unitized 20.21% stake in the Agbami oil field operated by Chevron. The acquisition aligns with Aradel’s strategy to deepen its gas competencies while accessing offshore assets through low-risk approaches.

Despite investment outflows, Aradel reported impressive Q1 2025 results with revenue surging 97.6% to N199.9 billion and profit after tax increasing 55.3% to N34.2 billion year-on-year. The company also declared a final dividend of NGN22/share, which combined with the interim dividend of NGN8/share represents a 200% increase over 2023 payments.

Source: punchng.com

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