Norwegian oil and gas company Equinor has finalized the sale of its assets in Nigeria and Azerbaijan for up to $2 billion, marking the end of its operations in both countries after roughly 30 years. The company announced the deal on Monday, which aligns with its strategy to streamline and optimize its international portfolio, focusing on higher-priority markets and opportunities.

The sale of Nigerian assets to Chappal Energies for up to $1.2 billion includes a 20.21% stake in the Agbami oil field operated by Chevron. The deal includes $710 million in cash, with the remainder tied to contingent payments, although Equinor has not disclosed how factors like market prices might influence those payments.

In Azerbaijan, Equinor divested a 7.27% stake in the Azeri Chirag Gunashli (ACG) field, an 8.71% stake in the Baku-Tbilisi-Ceyhan (BTC) oil pipeline, and a 50% stake in the Karabagh project. These assets were sold to Azerbaijan's SOCAR and India's ONGC for a combined total of $745 million.

Equinor first announced its plan to exit Nigerian operations in November 2023, bringing to a close more than three decades of activity in the country that began in 1992. The divestment, now finalized, is expected to boost cash flow in the fourth quarter of 2024, Reuters reported.

According to the company, the decision to sell its assets aligns with Equinor's strategy to streamline and optimize its international portfolio, allowing the company to focus on higher-priority markets and opportunities. Equinor has outlined plans to boost its international production by approximately 100,000 barrels of oil equivalent per day by 2030, with new fields in Brazil, the UK, and the US driving this growth.

The sale of its Nigerian and Azerbaijani assets marks a significant shift in Equinor's operations, as the company looks to prioritize its investments in more lucrative markets. The deal is expected to have a significant impact on the oil and gas industry, as companies continue to adapt to changing market conditions and shifting global demand.

Equinor's net production in Azerbaijan and Nigeria averaged 24,600 barrels of oil equivalent per day (boed) and 17,700 boed, respectively, over the first three quarters of 2024. The company's decision to exit these markets is likely to have significant implications for the local economies and industries, as well as the global oil and gas market.

The deal is a significant milestone for Equinor, as it continues to evolve and adapt to the changing energy landscape. As the company looks to the future, it remains to be seen how this shift in strategy will impact its operations and profitability in the long term.