KEY POINTS
- Chappal Energies reserve-based financing totals $430 million.
- Chappal Energies reserve-based financing refinances the Equinor Nigeria deal.L
- long-term funding further supports production optimisation and future acquisitions.
Chappal Energies, an energy firm incorporated in Mauritius and run by Nigerian CEO Ufoma Immanuel, has gotten $430 million in reserve-based financing.
This would help the company get long-term finance for its growing oil and gas portfolio in Nigeria and other parts of Africa.
The funding package includes a $340 million senior secured reserve-based lending facility arranged by a syndicate of international and African lenders, alongside a separate $90 million junior secured loan provided by a global commodities firm. Both facilities were closed through Chappal’s subsidiary, Chappal Investments Ltd, the company said Thursday.
Reserve-based lending, a structure commonly used in upstream oil and gas, ties borrowing capacity to the value of producing reserves and forecast cash flows. For Chappal, the transaction replaces short-term bridge financing with longer-dated capital aligned with the lifespan of its assets.
Chappal Energies reserve-based financing explained
Chappal will use most of the proceeds to refinance funding tied to its acquisition of Nigerian oil and gas assets from Norway’s Equinor ASA. Remaining capital will support field development, production optimisation and operating costs across the company’s portfolio.
Furthermore, Chappal said the transaction followed extensive due diligence by lenders, covering reserve quality, operating assumptions and governance standards. Completing the deal amid tighter global credit conditions, the company added, underscores lender confidence in both its assets and management team.
Founded in 2020, Chappal Energies focuses on acquiring mature African oil and gas assets divested by international producers. Its strategy emphasises operational discipline, reliability and targeted investment to extend field life and stabilise output. Immanuel previously worked in investment banking and private equity and played a role in Energy Link Infrastructure, an alternative crude evacuation system linked to Nigeria’s OML 18 joint venture.
Earlier this year, Chappal’s subsidiary Project Odinmin completed the purchase of Equinor’s Nigerian business, including offshore infrastructure and interests in the OML 128 and OML 129 fields.
Chappal Energies reserve-based financing amid deal setbacks
Billionaires Africa says the financing comes as Chappal navigates regulatory uncertainty in Nigeria. In July 2024, the company agreed to acquire TotalEnergies’ 10 percent stake in Shell Petroleum Development Company of Nigeria’s onshore assets for $860 million. Therefore Nigeria’s upstream regulator withdrew approval for the deal in September 2025, citing unmet financial conditions.
Chappal further said it remains focused on acquisitions that meet its financial and operational criteria, prioritising assets where it believes it can operate efficiently, safely and responsibly. The new financing, management said, provides flexibility to pursue those opportunities while maintaining balance-sheet resilience.
