Chappal Energies has closed a $430 million financing package through its subsidiary Chappal Investments Limited, marking a significant step in the company's ambitions to become a leading pan-African oil and gas producer.
The deal comprises a $340 million senior secured reserve-based credit facility from a syndicate of international and African banks, as well as a $90 million junior secured RBL facility provided by an unnamed global commodity trader. The company declined to identify the lenders involved in the transaction.
The facilities will primarily refinance the bridge financing used to acquire the asset from Norway's Equinor ASA, while providing capital for field development and production optimization at Chappell's Nigerian operations. According to energy finance experts, the transaction represents one of the largest reserve-based loan deals in West Africa this year.
“Achieving this result in a challenging global financing environment underlines the resilience of the company's business and its credibility with international capital providers,” Slipper said in a statement on Thursday.
The successful completion is described by Chappell as a “rigorous” due diligence process examining the technical quality, legal status and operational track record of its reserves. Reserve-based loan facilities, which are secured against proven oil and gas reserves, typically require extensive third-party verification of asset values and production forecasts.
The financing marks a significant milestone for Chappell as it seeks to establish itself among a new generation of African-led energy companies that are acquiring mature assets from international oil companies retreating from the continent. Companies including Seplet Energy and Ondo have adopted a similar strategy by acquiring areas divested by Shell, ExxonMobil and others.
Chappell's acquisition of Equinor's Nigerian assets – a deal announced earlier this year – represents the company's entry into large-scale oil production. The Norwegian company has been one of several international operators to reduce its Nigerian footprint amid operational challenges, regulatory complexity and energy transition pressures.
The transaction comes as African oil producers face a complex financing landscape. While global banks are increasingly banning fossil fuel lending under environmental commitments, regional lenders and commodity traders have stepped in to fill the gap. The involvement of both African and international institutions in the Chappell facility suggests a continued appetite for well-structured deals backed by proven reserves.
“The facilities establish a stable, long-term financing structure aligned with the company’s reserve base and cash flow profile,” Chappal said, emphasizing that the debt structure matches anticipated production revenues.
The company said it will “continue to engage constructively with regulators, partners and stakeholders” as it pursues what it described as its “next acquisition opportunity.” Nigerian oil sector transactions typically require approval from multiple government agencies, a process that can significantly increase timelines.
Chappell stressed its commitment to “responsible governance, strong governance and sustainable value creation,” language that reflects investors’ growing focus on environmental, social and governance standards in African energy projects.
The company described the financing as a “strong endorsement” of its strategy, assets and management team. Reserve-based credit facilities are typically reviewed semi-annually or annually, with borrowing capacity adjusted based on current reserve valuations and commodity price assumptions.
