Nigerian businessman Ufoma Immanuel’s Chappal Energies closes $430 million oil financing

Chappal Energies, a Mauritius-based energy company led by Nigerian business executive Ufoma Immanuel, has closed a $340 million senior secured reserve-based lending facility arranged by a group of international and African lenders, the company said Thursday. The financing was completed through its subsidiary, Chappal Investments Ltd.

The company also secured a separate $90 million junior secured reserve-based loan from a global commodities firm, lifting total funding to $430 million. The facilities provide Chappal with long-term capital tied to its producing reserves and expected cash flows, a structure commonly used in upstream oil and gas financing.

Long-term capital replaces short-term funding

Chappal said most of the proceeds will be used to refinance bridge financing linked to its recent acquisition of Nigerian oil and gas assets from Norway’s Equinor ASA. The remaining funds will support field development, production optimization and ongoing operating costs across its portfolio. Management said the financing helps replace short-term funding with longer-dated capital that better matches the life of the assets.

The deal followed months of due diligence by lenders, a process that reviewed reserve quality, operating plans and governance standards. In a statement, Chappal said closing the transaction in a tight global credit environment reflected lender confidence in both its assets and management team. The company added that it continues to work closely with regulators and operating partners while maintaining a focus on safety, compliance and cost control.

Chappal Energies expands African oil assets

Founded in 2020 by Immanuel, Chappal Energies focuses on acquiring and operating mature oil and gas assets in Africa, particularly those being divested by international producers. The strategy centers on improving production reliability and extending the productive life of fields through targeted investment and disciplined operations.

Immanuel previously worked in investment banking and private equity and was involved in the development of Energy Link Infrastructure, an alternative crude evacuation system associated with Nigeria’s OML 18 joint venture. Earlier this year, Chappal’s subsidiary, Project Odinmin, completed the acquisition of Equinor’s Nigerian operations, including offshore infrastructure and interests in the OML 128 and OML 129 fields.

Chappal eyes acquisitions despite regulatory setback

The financing comes as Chappal navigates a changing environment 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. Nigeria’s upstream regulator later withdrew approval for the transaction in September 2025, citing unmet financial conditions.

Chappal said it remains focused on opportunities that meet its financial criteria and operational capabilities. It will continue to pursue acquisitions that align with its interests and long-term plans, while prioritizing assets where it believes it can operate efficiently and responsibly. (Billionaires Africa)