TotalEnergies has announced the sale of a 40% stake in two offshore exploration licenses in Nigeria to Chevron, in a move aimed at strengthening collaboration between the French and US energy giants. The joint venture seeks to derisk and develop new opportunities in Nigeria, unlocking new resources in the West Delta basin, according to Nicola Mavilla, Total’s senior vice president of exploration.
Nigeria is a significant contributor to TotalEnergies’ African oil and gas production, accounting for over a third of its output on the continent and 8.5% of its global hydrocarbons. However, the company’s production in Nigeria has declined by a quarter over the past two decades. The sale will see TotalEnergies remain the operator of the site with 40% participation, alongside Chevron, also with 40%, and South Atlantic Petroleum at 20%.
This move is part of TotalEnergies’ efforts to streamline its African portfolio, focusing on assets it operates while seeking new sources of supply. The company has been working to strengthen its partnership with Chevron, with the two majors having previously collaborated on an exploration partnership in June. At that time, Chevron sold Total a 25% interest in a portfolio of 40 US federal offshore leases for an undisclosed amount.
The partnership between TotalEnergies and Chevron is expected to enhance their presence in the Nigerian energy sector, with the two companies working together to develop new opportunities and unlock new resources. The move is also seen as a strategic decision by TotalEnergies to consolidate its position in Africa, while expanding its global footprint through partnerships and collaborations.
The sale of the stake in the Nigerian offshore exploration licenses is a significant development in the energy sector, highlighting the growing trend of partnerships and collaborations between major energy companies. As the global energy landscape continues to evolve, such partnerships are expected to play a crucial role in shaping the future of the industry. With TotalEnergies and Chevron working together, the Nigerian energy sector is likely to see significant investments and developments in the coming years.