In a strategic move to deepen ties between two of the world’s leading energy firms, TotalEnergies has agreed to sell a 40% stake in two offshore exploration licenses in Nigeria’s prolific West Delta basin to Chevron’s subsidiary, Star Deep Water Petroleum Limited. The transaction, announced today, underscores the growing collaboration between the French multinational and its American counterpart, aiming to unlock untapped hydrocarbon potential in the Niger Delta region while aligning with Nigeria’s objectives for resource development and economic growth.
The deal encompasses Petroleum Prospecting Licenses (PPL) 2000 and PPL 2001, spanning approximately 2,000 square kilometers in the gas-rich West Delta basin, a key area within the Niger Delta known for its significant oil and gas reserves. Following the divestment, TotalEnergies will retain a 40% operating interest, maintaining its role as operator of the blocks, while Chevron assumes an equal 40% stake, and the existing partner, South Atlantic Petroleum, holds the remaining 20%. The agreement is subject to customary closing conditions, including regulatory approvals from Nigerian authorities and other stakeholders, with no financial terms disclosed at this time.
This partnership builds on an earlier collaboration initiated in June 2025, when TotalEnergies acquired a 25% working interest in a portfolio of 40 U.S. federal offshore exploration leases operated by Chevron. The expansion into Nigeria represents a reciprocal step, enhancing joint efforts in high-potential offshore basins globally. “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,” said Nicola Mavilla, Senior Vice-President for Exploration at TotalEnergies. “This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.”
For Nigeria, the deal arrives at a pivotal moment as the nation seeks to bolster its upstream sector amid fluctuating global energy prices and domestic production challenges. The Niger Delta, home to over 60 years of TotalEnergies’ operations, remains central to the country’s oil output, contributing around 209,000 barrels of oil equivalent per day to the company’s global production as of 2024. With more than 1,800 employees in Nigeria across various segments, TotalEnergies views the region as a cornerstone for sustainable growth, particularly in low-emission offshore assets. Industry analysts suggest the transaction could accelerate exploration activities, potentially leading to new discoveries that support Nigeria’s gas expansion ambitions and reduce import dependencies.
The move also reflects broader portfolio optimization strategies among supermajors. TotalEnergies has been streamlining its African holdings, recently divesting non-operated interests in assets like the OML 118 Production Sharing Contract to focus on operated, high-value projects such as the Ubeta gas development, which sustains supplies to Nigeria LNG. Chevron, meanwhile, continues to invest in Nigeria’s deepwater frontiers, including its majority stake in the Bonga field, signaling confidence in the basin’s long-term viability despite environmental and community concerns in the Niger Delta.
Stakeholders in the region, including local communities and the Niger Delta Development Commission (NDDC), have welcomed the news as an opportunity for technology transfer, job creation, and infrastructure investments. However, calls persist for robust environmental safeguards to mitigate impacts from intensified exploration. As the deal progresses toward completion, it positions the Niger Delta as a focal point for international energy partnerships, potentially injecting fresh momentum into Nigeria’s quest for energy security and diversification.
