French energy giant TotalEnergies has agreed to sell a 40 per cent interest in two Nigerian offshore exploration licences to Star Deep Water Petroleum Limited, a subsidiary of American oil major Chevron.
The deal, announced on Monday, covers licences spanning about 2,000 square kilometres in the oil-rich Niger Delta deep-water basin and remains subject to regulatory approvals.
Under the new arrangement, TotalEnergies will retain a 40 per cent stake and continue as operator of the blocks, while its existing consortium partner, South Atlantic Petroleum, holds the remaining 20 per cent.
The transaction strengthens an expanding global exploration partnership between TotalEnergies and Chevron, following the French company’s recent acquisition of interests in certain United States offshore leases from the American firm.
Nicola Mavilla, Senior Vice-President for Exploration at TotalEnergies, described the joint venture as a strategic move “aim[ing] at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.”
Nigeria has been actively encouraging international oil companies to invest in new exploration and development projects as the government seeks to reverse a decade-long decline in crude production caused by theft, ageing infrastructure, and under-investment.
The sale forms part of TotalEnergies’ ongoing portfolio optimisation strategy in Nigeria, where the company has in recent years divested several onshore and shallow-water assets to focus on deep-water and gas projects with lower operational risks and higher profitability.
Regulatory approval for the transaction is now awaited from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Minister of Petroleum Resources.