Chappal Energies Faces Financial Crisis After Major Acquisition

In December 2024, Chappal Energies completed a significant acquisition of Equinor's entire Nigerian portfolio for up to $1.2 billion, gaining a 53.85% interest in OML 128 and a 20.21% stake in the Agbami field operated by Chevron. However, by April 2026, Chappal Energies faced a dire financial situation, accumulating $430 million in bank debt, leading creditors such as Standard Bank, Rand Merchant Bank, and Mauritius Commercial Bank to issue formal default notices.

The company also owed Equinor over $100 million in deferred payments. A planned $860 million acquisition of TotalEnergies' SPDC stake failed after the Nigerian Upstream Petroleum Regulatory Commission canceled it due to Chappal's inability to raise necessary funds.

Founder Ufoma Joseph Immanuel was arrested by the EFCC in May 2026 on suspicion of forgery and has been detained in Lagos. Meanwhile, a minority shareholder fund, R28, chaired by Adebisi Adebutu, initiated a $100 million rights issue to prevent bankruptcy, while Immanuel's legal attempts to block this move failed.

Michael Humphries serves as interim CEO, and Trafigura has provided pre-financing revenue advances.