TotalEnergies Announces Plan to Sell 40% of Nigeria’s Assets to Chevron

TotalEnergies yesterday announced that it planned to sell a 40 per cent stake in two offshore exploration licenses in Nigeria to Chevron in a move aimed at strengthening collaboration between the French and U.S. energy giants.

TotalEnergies said it will remain the operator of the site with 40 per cent participation, alongside Chevron, also with 40 per cent, and South Atlantic Petroleum at 20 per cent.

Nigeria accounts for more than a third of TotalEnergies’ African oil and gas production and 8.5 per cent of its global hydrocarbons, though its output in the country has declined by a quarter over the past two decades.

It is now streamlining its African portfolio, focusing on assets it operates while seeking new sources of supply.

In June, Chevron sold Total a 25 per cent interest in a portfolio of 40 U.S. federal offshore leases for an undisclosed amount, as part of an exploration partnership between the majors.

“ 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 per cent participation in the PPL 2000 and PPL 2001 exploration licenses, offshore Nigeria.

“Located in the prolific West Delta basin, the PPL 2000 & 2001 licenses cover an area of approximately 2,000 square kilometers and were awarded to a consortium of TotalEnergies and South Atlantic Petroleum following the 2024 Exploration Round organised by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

“TotalEnergies will remain operator with a 40 per cent participation alongside Chevron (40 per cent) and South Atlantic Petroleum (20 per cent),” the oil giant stated in the statement.

This new joint venture, it said, reinforces TotalEnergies’ global offshore exploration collaboration with Chevron, following the June acquisition of a 25 per cent working interest in a portfolio of exploration leases Offshore U.S. comprising 40 Chevron-operated blocks.

“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,” said Nicola Mavilla, Senior Vice-President Exploration at TotalEnergies.

 “This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country,” Mavilla noted.

Completion of the farmout transaction with Chevron, the statement said, is subject to customary conditions, including regulatory approvals.

TotalEnergies has been present in Nigeria for more than 60 years and employs more than 1,800 people across different business segments. Nigeria is one of the main contributing countries to TotalEnergies’ hydrocarbon production with 209,000 boe/d produced in 2024.

TotalEnergies also operates an extensive distribution network which includes about 540 service stations in the country. In all its operations, TotalEnergies said it is particularly attentive to the socio-economic development of the country and is committed to working with local communities.