TotalEnergies Sells Stake in Nigerian Offshore Licenses to Chevron Subsidiary
French energy major TotalEnergies has announced the sale of a 40% stake in its Nigerian offshore exploration licenses to Star Deep Water Petroleum Limited, a subsidiary of US oil giant Chevron. The agreement covers two license areas spanning 2,000 square kilometers in the West Delta basin, according to a report by Reuters. The transaction is subject to regulatory approval, TotalEnergies said in a statement.
The company will continue to operate the sites and retain a 40% interest, while its consortium partner, South Atlantic Petroleum, will maintain its 20% stake. This partnership is seen as a boost to TotalEnergies’ global offshore exploration collaboration with Chevron, following the French company’s acquisition of stakes in US offshore exploration leases.
The new venture is positioned to “derisk and develop new opportunities in Nigeria, in line with the objectives of the country,” said Nicola Mavilla, TotalEnergies’ senior vice-president for exploration. The West Delta basin is a significant oil-producing region, and this partnership is expected to contribute to the country’s oil and gas production.
TotalEnergies’ decision to sell a stake in its Nigerian offshore licenses is part of its strategy to optimize its portfolio and focus on high-potential exploration areas. The company has been actively exploring and producing oil and gas in Nigeria for several decades and has a strong presence in the country’s energy sector.
The partnership with Chevron is expected to bring in new expertise and technology to the Nigerian offshore exploration sector, which could lead to new discoveries and increased production. The Nigerian government has been encouraging international oil companies to invest in the country’s oil and gas sector, and this partnership is seen as a positive development in this regard.
The transaction is subject to regulatory approval, and the parties involved are expected to work closely with the relevant authorities to ensure a smooth completion of the deal. With this partnership, TotalEnergies and Chevron are poised to play a significant role in Nigeria’s oil and gas industry, and their collaboration is expected to have a positive impact on the country’s energy sector.
