France’s energy giant TotalEnergies has strengthened its oil and gas bonds with the U.S.-headquartered Chevron by inking a deal to divest a partial stake in two exploration licenses off the coast of Nigeria to Star Deep Water Petroleum Limited, a Chevron company.
As part of an ongoing discussion of global exploration opportunities between TotalEnergies and Chevron, the French player has signed a farm-out agreement, enabling the U.S. oil major to acquire a 40% participation in the PPL 2000 and PPL 2001 exploration licenses offshore Nigeria.
Located in the prolific West Delta basin, the PPL 2000 & 2001 licenses, which cover an area of approximately 2,000 square kilometers, were awarded to a consortium of TotalEnergies and South Atlantic Petroleum following the 2024 Exploration Round organized by the Nigerian Upstream Petroleum Regulatory Commission.
The French giant will remain in the operator role with a 40% participation alongside its partners, Chevron (40%) and South Atlantic Petroleum (20%). This new joint venture is said to reinforce TotalEnergies’ global offshore exploration collaboration with the U.S. player.
The completion of the farm-out transaction is subject to customary conditions, including regulatory approvals. This deal follows the June acquisition of a 25% working interest in a portfolio of exploration leases in U.S. waters, comprising 40 Chevron-operated blocks .
Nicola Mavilla , Senior Vice-President Exploration at TotalEnergies, commented: “After launching our joint venture in US offshore exploration in June, we’re delighted to now expand our collaboration to Nigeria to unlock new resources in the West Delta basin.
“This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.”
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TotalEnergies has been actively working on expanding its African portfolio, as illustrated by four offshore exploration permits the firm secured a few months ago in Liberia and more offshore acreage in Nigeria.