TotalEnergies has moved to shed part of its Nigerian offshore portfolio after signing a farmout agreement to sell a 40% stake in two exploration licenses to Chevron.
In a statement issued Monday, TotalEnergies EP Nigeria confirmed it will transfer a 40% participation in PPL 2000 and PPL 2001 to Star Deep Water Petroleum Limited, a Chevron subsidiary.
The licenses, located in the prolific West Delta basin, cover about 2,000 square kilometers and were awarded during Nigeria’s 2024 exploration round conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Once the sale is completed, TotalEnergies will retain a 40% interest and continue as operator, while Chevron takes 40% and South Atlantic Petroleum holds the remaining 20%.
The divestment marks a strategic shift for TotalEnergies, which has been streamlining its global upstream portfolio while reallocating capital to other exploration zones. The company recently sold Chevron a 25% interest in a U.S. offshore exploration portfolio, and the Nigerian sale extends that restructuring trend to West Africa.
“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.”
Regulatory Approval
While framed as cooperation, the transaction also represents another instance of asset transfers within Nigeria’s offshore sector, where international oil companies continue to adjust their positions amid shifting global energy priorities.
Completion of the farmout is subject to regulatory approvals, including from NUPRC.
TotalEnergies, which produced 209,000 barrels of oil equivalent per day in 2024 in Nigeria, maintains a broad presence in the country, including a network of 540 service stations and more than 1,800 employees.
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