TotalEnergies has announced a major strategic move in its Nigerian operations, revealing plans to sell a 40 percent stake in two offshore exploration licenses to Chevron. The French energy giant confirmed the development on Monday, describing it as part of a broader effort to strengthen cooperation with Chevron as both companies reposition their exploration portfolios across Africa and the United States.
According to the company, the agreement—structured as a farmout deal—will see TotalEnergies transfer a 40 percent interest in the PPL 2000 and PPL 2001 exploration licenses to Star Deep Water Petroleum Limited, a subsidiary of Chevron. Despite the sale, TotalEnergies will continue as the operator of the licenses with a remaining 40 percent stake, while South Atlantic Petroleum (SAPETRO) holds the remaining 20 percent.
The two exploration blocks, located in the prolific West Delta Basin, cover an area of approximately 2,000 square kilometres. The acreage was awarded to the TotalEnergies–SAPETRO consortium during the 2024 Exploration Round organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The decision to bring Chevron onboard marks another key step in TotalEnergies’ ongoing strategy to streamline its African oil and gas portfolio. While Nigeria remains a major cornerstone of its operations—with the country representing more than one-third of TotalEnergies’ total African hydrocarbon output and 8.5 percent of its global production—the company has faced declining output in the region. Over the past two decades, TotalEnergies’ production in Nigeria has dropped by nearly 25 percent, prompting a renewed focus on assets where it retains operational control and can drive efficiency and innovation.
The partnership with Chevron reflects a growing trend of collaboration among major international energy companies as they seek to optimize exploration investments and share technical risk. In June this year, Chevron sold TotalEnergies a 25 percent stake in a portfolio of 40 U.S. federal offshore leases. That deal formed the basis of an exploration joint venture between the companies, designed to consolidate expertise and intensify exploration activity across high-potential offshore basins.
TotalEnergies said the Nigerian farmout transaction is a natural extension of that partnership. “Further to an ongoing discussion of global exploration opportunities between TotalEnergies and Chevron, TotalEnergies EP Nigeria has signed a farmout agreement to sell to Star Deep Water Petroleum Limited, a Chevron company, a 40 percent participation in the PPL 2000 and PPL 2001 exploration licenses, offshore Nigeria,” the company stated.
In the official announcement, Nicola Mavilla, Senior Vice-President for Exploration at TotalEnergies, expressed optimism about the potential of the new joint venture. “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,” Mavilla said.
He added that the partnership is aligned with Nigeria’s national energy objectives, emphasizing the need for renewed investment in frontier exploration zones to help the country maintain production stability and long-term energy competitiveness. “This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country,” he noted.
Nigeria, Africa’s leading oil producer, continues to push for fresh investments in deepwater and ultra-deepwater exploration. With global shifts toward cleaner fuels and more efficient exploration technologies, the involvement of major players like TotalEnergies and Chevron is expected to help strengthen Nigeria’s long-term energy outlook and revive confidence in the upstream sector.
Completion of the transaction, however, remains subject to regulatory approvals and standard closing conditions. The Nigerian Upstream Petroleum Regulatory Commission will play a central role in reviewing and approving the transfer of participating interests in the licenses.
TotalEnergies has maintained a strong and long-standing presence in Nigeria for more than six decades. The company currently employs more than 1,800 people across different segments, including upstream exploration and production, gas operations, and downstream distribution. With a production rate of about 209,000 barrels of oil equivalent per day recorded in 2024, Nigeria ranks as one of TotalEnergies’ most significant contributors globally.
Beyond its upstream operations, TotalEnergies runs one of Nigeria’s largest downstream networks, managing approximately 540 service stations nationwide. The company continues to place emphasis on socio-economic impact, maintaining programmes focused on job creation, community development, capacity building, and human capital advancement within host communities.
This latest development comes at a time when Nigeria’s energy industry is experiencing a series of major portfolio adjustments among international energy companies. Several global oil giants have been reviewing or divesting portions of their Nigerian assets to sharpen their investment focus or to accelerate gas-focused strategies. Earlier this year, TotalEnergies announced its intention to sell its stake in the Bonga oilfield to Shell for $510 million, while Chappal Energies acquired the company’s 10 percent stake in selected Nigerian oil and gas assets valued at $860 million.
Industry analysts believe that the Chevron–TotalEnergies partnership could spark renewed interest in high-potential exploration blocks, particularly within the West Delta Basin, where several significant oil discoveries have previously been made. The involvement of two of the world’s largest and most technologically advanced energy companies could introduce new geoscience techniques, enhanced recovery methods, and substantial capital injection into Nigeria’s offshore exploration efforts.
As energy markets continue to evolve, strategic collaborations such as this are expected to play an increasingly important role in shaping the future of oil and gas development in Africa’s most populous nation.
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