Adegbite Falade-led Aradel commits $20 million to Chappal Energies acquisition

Key Points

• Aradel commits $20 million to boost its stake in Chappal Energies, aiming to strengthen its presence in Nigeria’s natural gas and offshore sectors.
• Cash flow from operations plunged 45.1 percent in Q1 2025, impacted by delayed crude and gas payments and the Chappal investment.
• Despite cash pressure, Aradel’s Q1 revenue surged 97.6 percent to N199.87 billion ($124.19 million), with profit after tax rising 55.3 percent.

Aradel Holdings, the Nigerian energy group led by Adegbite Falade, has committed $20 million toward acquiring a bigger stake in Chappal Energies. The move is part of a broader plan to diversify its operations and build a stronger presence in Nigeria’s energy sector. However, setting aside the funds has had an immediate impact on Aradel’s finances, contributing to a drop in cash flows, according to the company’s unaudited financial report for Q1 2025.

Aradel cash flow drops 45 percent

For the period, Aradel reported cash flows from operations of N30.6 billion ($19 million), down 45.1 percent from N55.8 billion ($34.67 million) a year earlier. The company pointed to two main reasons for the decline: a delay in receiving N70.3 billion ($43.7 million) from crude and gas sales, and the $20 million earmarked for the Chappal Energies deal. Despite the setback, Aradel says it remains confident about the long-term payoff.

“We believe strongly in the value these assets will bring,” Managing Director Adegbite Falade said. “Gas will be a critical part of Nigeria’s energy future, and we are committed to playing a major role in that journey.” The investment builds on Aradel’s earlier acquisition of a 5.14 percent equity stake in Chappal Energies in December 2024. This reflects the growing focus on natural gas and offshore assets, areas it sees as essential for long-term growth.

Aradel revenue surges 97.6 percent in Q1

Originally known as Niger Delta Exploration & Production Plc, Aradel has steadily grown into a major player across Nigeria’s upstream, midstream, and downstream sectors. Under Falade’s leadership, it has expanded its footprint while adapting to changes in the energy landscape.

While cash flow has taken a hit, Aradel’s overall financial performance for the first quarter tells a different story. The company posted a 97.6 percent jump in revenue to N199.87 billion ($124.19 million), up from N101.16 billion ($62.86 million) a year earlier. Profit after tax also climbed 55.3 percent to N34.2 billion ($21.25 million).

Aradel’s latest moves are part of a larger push to build a stronger upstream portfolio. In addition to its growing stake in Chappal Energies, the company recently completed a $19.5 million deal to acquire the Olo and Olo West Marginal Fields from the TotalEnergies–NNPC Joint Venture, strengthening its footprint in Nigeria’s oil-rich Niger Delta.

Chappal deal boosts Aradel’s future

Chappal Energies itself has been making waves, notably with its December 2024 acquisition of Equinor Nigeria Energy Company, which holds a 53.85 percent stake in OML 128, including a 20.21 percent interest in the Agbami oil field operated by Chevron. By deepening its partnership with Chappal, Aradel is betting on a future built not just on oil, but increasingly on gas — a bet that could reshape its role in Nigeria’s energy market for years to come.