TotalEnergies and Chevron have entered into an agreement where TotalEnergies will sell a 40% stake in two significant deepwater exploration blocks in Nigeria to Chevron. These blocks, Petroleum Prospecting Licenses (PPLs) 2000 and 2001, were awarded to TotalEnergies in a 2024 licensing round.

Strategic Collaboration

The deal is framed as an extension of the companies' global exploration partnership. It follows a June 2025 agreement where TotalEnergies acquired a 25% interest in 40 Chevron-operated offshore exploration leases in the US. Both companies state this new transaction reinforces their collaboration, specifically to pursue exploration opportunities offshore Nigeria.

Block Details

The blocks cover approximately 2000 square kilometres in the West Delta basin, with water depths ranging from 1100 to 2100 metres. PPL 2000 has seen two dry wells and is near the Echim oilfield, while PPL 2001 remains undrilled.

Ownership Structure

Following the transaction, TotalEnergies' operating interest in the blocks will reduce from 80% to 40%. Chevron will hold the acquired 40%, and the Nigerian independent company South Atlantic Petroleum will retain its existing 20% interest.

Executive Perspectives

TotalEnergies' head of exploration stated the deal expands the joint venture from the US to Nigeria, aiming to unlock new resources. Chevron's head of exploration noted the blocks enhance its global portfolio within the prolific Niger Delta system. Chevron's Nigeria chairman expressed optimism about the growth potential of Nigeria's oil and gas industry.

Transaction Status

The completion of the farm-out deal is pending standard conditions, including necessary regulatory approvals.