TotalEnergies has finalized the sale of a 40% stake in two offshore exploration licenses in Nigeria to Chevron. This agreement, announced on Monday, marks a significant step in the ongoing collaboration between the two energy giants, focusing on exploration opportunities in the region.
The licenses in question, PPL 2000 and PPL 2001, are located in the West Delta basin, an area known for its prolific oil reserves. Despite the sale, TotalEnergies will maintain its position as the operator, holding a 40% interest alongside Chevron, which has also acquired a 40% stake. South Atlantic Petroleum holds the remaining 20% interest in this joint venture.
Strengthening Global Partnerships
This transaction aligns with TotalEnergies’ strategy to enhance its global offshore exploration efforts. The partnership with Chevron follows their recent collaboration in June 2024, when TotalEnergies acquired a 25% working interest in a portfolio of exploration leases off the U.S. coast, which includes 40 blocks operated by Chevron.
Nicola Mavilla, Senior Vice-President Exploration at TotalEnergies, expressed enthusiasm about the expansion of their collaboration in Nigeria. “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,” he stated. Mavilla emphasized that this venture is aimed at derisking and developing new opportunities in Nigeria, aligning with the country’s objectives.
TotalEnergies plays a critical role in Nigeria’s energy sector, with oil and gas production reaching an impressive 209,000 barrels of oil equivalent per day (boe/d) in 2024. As the largest oil producer in Africa, Nigeria is a key contributor to TotalEnergies’ overall hydrocarbon output.
Nigeria’s Growing Oil Sector
The Nigerian government is actively seeking to bolster its oil and gas production, addressing challenges such as theft and vandalism that have historically plagued the industry. Recent moves by major oil companies reflect a growing interest in the region. For instance, Shell plc recently increased its stake in Nigeria’s OML 118 Production Sharing Contract from 55% to 65%, demonstrating its commitment to expanding upstream output.
Additionally, Nigeria is preparing for its 2025 oil licensing round, with the Upstream Petroleum Regulatory Commission (NUPRC) taking on a more prominent role. This shift is part of President Bola Tinubu’s strategy to boost oil production, attract foreign investment, and advance Nigeria’s economic goals, including a target of achieving a $1 trillion economy.
The collaboration between TotalEnergies and Chevron, as well as the broader activities in Nigeria’s oil sector, illustrates a dynamic landscape in which international companies are working together to unlock the potential of one of Africa’s richest energy resources.
