TotalEnergies has signed a major farmout agreement with Star Deep Water Petroleum Limited, a Chevron company, transferring a 40% stake in two high-potential offshore exploration licences in Nigeria.
The deal marks a significant expansion of the companies’ global exploration alliance and positions both energy giants to jointly pursue new resource developments in one of West Africa’s most prolific basins.
Speaking on the new partnership, TotalEnergies’ Senior Vice-President for Exploration, Nicola Mavilla, highlighted the strategic importance of extending the company’s relationship with Chevron beyond the United States.
“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.”
Nicola Mavilla, TotalEnergies’ Senior Vice-President for Exploration
Mavilla added that the joint venture “aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.”
The two energy majors deepened their global cooperation earlier this year when TotalEnergies acquired a 25% working interest in a Chevron-operated portfolio of 40 offshore exploration blocks in the United States. The new Nigerian transaction represents the next phase of that partnership.
The French supermajor announced that the agreement covers Petroleum Prospecting Licences (PPL) 2000 and 2001, both located in the West Delta basin.
The licences were awarded in 2024 following Nigeria’s competitive Exploration Round overseen by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
High-Potential Licences in a Prolific Basin
PPL 2000 and PPL 2001 cover approximately 2,000 square kilometres in one of Nigeria’s most resource-rich offshore zones. The West Delta basin has historically delivered major oil and gas discoveries, supporting large-scale developments that underpin the country’s petroleum economy.
Under the updated ownership structure, TotalEnergies will retain operatorship with a 40% stake, while Chevron’s Star Deep Water Petroleum will hold the newly acquired 40% interest. South Atlantic Petroleum (SAPETRO) will continue as a minority partner with 20%.
The basin’s geology, combined with Nigeria’s renewed drive to attract upstream investors makes these blocks particularly attractive. Exploration success in the area could contribute significantly to Nigeria’s efforts to reverse years of declining production and unlock fresh revenue streams.
Nigeria has been pushing to revitalise its upstream sector, expanding incentives and regulatory reforms under the Petroleum Industry Act (PIA) to draw global investment. The participation of two of the world’s largest oil companies is viewed as a vote of confidence in Nigeria’s long-term potential.
Energy experts say the partnership could accelerate exploration activities and enhance technological know-how in the basin, especially given both companies’ deep-water expertise.
Mavilla emphasised that the collaboration aligns with national goals, noting that the venture is intended to “derisk and develop new opportunities in Nigeria,” signalling a commitment to continued exploration even as global energy dynamics evolve.
Regulatory Approvals Still Pending
TotalEnergies clarified that the transaction remains subject to the standard regulatory approval processes. This includes consent from the NUPRC and compliance with Nigeria’s fiscal and operational guidelines under the PIA framework.
Industry watchers do not expect major hurdles, as the agreement aligns with Nigeria’s push to accelerate exploration investments and boost offshore activity. However, timelines for completion will depend on regulatory review and administrative procedures.
The Chevron–TotalEnergies partnership is increasingly emerging as a notable force in offshore exploration. Their joint initiatives in the United States, and now Nigeria, suggest a strategic move to diversify portfolios into geologically promising regions with significant upside potential.
By broadening its international partnerships, Chevron is strengthening its global exploration presence, while TotalEnergies leverages shared risk and technical collaboration to pursue growth in high-impact plays.
The entry into PPL 2000 and 2001 gives both companies an opportunity to test new prospects in one of Africa’s largest petroleum provinces, helping reinforce their long-term deep-water expansion strategies.
The farmout agreement also signals that Nigeria’s offshore geology continues to attract global interest despite competition from other African and international exploration hotspots.
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