Chevron takes 40% stake in TotalEnergies’ offshore Nigeria blocks

(WO) - TotalEnergies has strengthened its global exploration ties with Chevron following a new farmout agreement covering two offshore licenses in Nigeria’s West Delta basin.

The company announced that its Nigerian subsidiary, TotalEnergies EP Nigeria, has agreed to transfer a 40% interest in exploration licenses PPL 2000 and PPL 2001 to Star Deep Water Petroleum Limited, a Chevron company. TotalEnergies will remain operator with a 40% stake, alongside Chevron (40%) and South Atlantic Petroleum (20%).

The licenses, awarded during Nigeria’s 2024 Exploration Round organized by the Nigerian Upstream Petroleum Regulatory Commission, span roughly 2,000 km² in a prolific offshore region with established production nearby.

The farmout expands the companies’ exploration collaboration following TotalEnergies’ June acquisition of a 25% working interest across 40 Chevron-operated offshore blocks in the U.S. Gulf of Mexico.

“After launching our joint venture in U.S. offshore exploration in June, we’re delighted to now expand our collaboration to Nigeria to unlock new resources in the West Delta basin,” said Nicola Mavilla, senior vice president of exploration for TotalEnergies. “This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.”

Completion of the transaction remains subject to regulatory approvals and other customary conditions.