French energy group TotalEnergies announced on Monday that it had signed an agreement to sell a 40-percent stake in two Nigerian offshore exploration licences to Star Deep Water Petroleum Limited, a subsidiary of US oil major Chevron.
The sale concerns the PPL 2000 and PPL 2001 exploration areas, located in the prolific West Delta basin and covering a combined 2,000 square kilometres.
TotalEnergies obtained the exploration rights in September after winning them in the 2024 licensing round organised by the Nigerian Upstream Petroleum Regulatory Commission.
Under the agreement, which remains subject to regulatory approval and customary conditions, TotalEnergies will retain a 40-percent stake and continue as operator of the two blocks.
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Chevron, through its subsidiary, will hold 40 percent, while Nigerian partner South Atlantic Petroleum will maintain its existing 20 percent interest.
"This new joint venture reinforces TotalEnergies' global offshore exploration collaboration with Chevron," the French group said, recalling that it had taken a 25-percent stake earlier this year in a portfolio of Chevron-operated offshore exploration blocks in the United States.
Nicola Mavilla, TotalEnergies' Senior Vice-President for Exploration, said the partnership "aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country".
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The company described the West Delta basin as a key region for expanding exploration activities in West Africa, where both TotalEnergies and Chevron have long-standing interests.
The agreement marks another step in TotalEnergies' strategy to optimise its exploration portfolio and strengthen cooperation with major international players in frontier basins.
TotalEnergies and South Atlantic Petroleum had signed a production sharing contract for the two licences on 2 September, formalising rights that could pave the way for future discoveries in the deepwater zone.
The planned stake sale, once completed, will consolidate a trilateral partnership between French, American, and Nigerian energy players as the sector seeks to balance investment opportunities with regulatory and environmental considerations.
(With newswires)
