In a significant move to strengthen their strategic alliance, French energy major TotalEnergies has agreed to sell a 40% interest in two offshore exploration licenses in Nigeria to its US counterpart, Chevron. The announcement was made by the company on Monday, highlighting a continued push for collaboration between the two global giants.
Details of the Strategic Partnership
The transaction involves two exploration licenses located offshore Nigeria. Following the completion of the sale, TotalEnergies will retain a 40% stake and continue as the operator of the assets. The remaining interests will be held by Chevron and the local company, South Atlantic Petroleum. The deal is expected to be finalized after meeting standard conditions, which include obtaining necessary regulatory approvals from the Nigerian authorities.
This agreement marks the second major collaboration between TotalEnergies and Chevron in recent months. It follows a similar partnership established in June, where TotalEnergies acquired a 25% working interest in a portfolio of exploration leases offshore the United States, a portfolio that includes 40 blocks operated by Chevron.
Focus on Derisking and Development in Nigeria
Senior Vice-President of Exploration at TotalEnergies, Nicola Mavilla, commented on the expansion of their joint venture. "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," Mavilla stated. He emphasized that the new joint venture aims to derisk and develop new opportunities in Nigeria, aligning with the country's own economic and energy objectives.
TotalEnergies' Long-Standing Presence in Nigeria
TotalEnergies is not a new player in the Nigerian energy landscape. The company has maintained a presence in the country for over six decades and currently employs more than 1,800 people across its various business segments. Nigeria remains a cornerstone of TotalEnergies' global production portfolio.
In 2024, the country contributed significantly to the company's hydrocarbon output, with production reaching 209,000 barrels of oil equivalent (boe). Beyond upstream exploration and production, TotalEnergies also operates an extensive downstream network in Nigeria, which includes approximately 540 service stations nationwide.
This latest deal underscores the ongoing confidence of international energy companies in Nigeria's hydrocarbon potential and represents a strategic effort to pool expertise and share risks in exploring frontier offshore resources.
