TotalEnergies EP Nigeria has signed a farmout agreement with Chevron’s Star Deep Water Petroleum to sell a 40% stake in the PPL 2000 and PPL 2001 offshore licences.
Located in the West Delta basin in Nigeria, the two exploration licences cover approximately 2,000km².
The Nigerian Upstream Petroleum Regulatory Commission awarded the licences to a consortium comprising TotalEnergies and South Atlantic Petroleum during the 2024 Exploration Round.
Under the terms of the agreement, TotalEnergies will have a 40% participation stake and continue as operator, while Chevron will hold another 40% stake in the licences.
South Atlantic Petroleum will have the remaining 20% interest.
The closing of the farmout transaction remains subject to customary conditions including regulatory approvals.
In June, TotalEnergies acquired a 25% working interest in a portfolio of offshore US exploration leases, comprising 40 blocks operated by Chevron.
This new agreement is said to further strengthen TotalEnergies’ global offshore exploration collaboration with Chevron.
TotalEnergies exploration senior vice-president Nicola Mavilla said: “After launching our joint venture [JV] in US offshore exploration in June, we are delighted to now expand our collaboration to Nigeria to unlock new resources in the West Delta basin.
“This new JV aims at de-risking and developing new opportunities in Nigeria, in line with the objectives of the country.”
Last week, the French oil and gas company completed the sale of its non-operated stake in the Bonga deep-water oilfield offshore Nigeria.
TotalEnergies transferred its stake to Shell subsidiary Shell Nigeria Exploration and Production Company and Eni’s subsidiary Nigerian Agip Exploration.
The sale resulted in changes to the Bonga deep-water field ownership structure within the oil mining lease 118 production sharing contract.
Last month, Chevron forecast more than 10% growth in its annual adjusted free cash flow and annual earnings per share through 2030, assuming Brent crude prices of $70 per barrel.
The company reduced its capital expenditure guidance range to $18bn–21bn per year.
