TotalEnergies Sells 40% Stake in Nigerian Offshore Licenses to Chevron

We report that TotalEnergies has agreed to sell a 40% stake in two offshore Nigerian exploration licenses to the U.S. energy giant Chevron. The deal covers Petroleum Prospecting License (PPL) 2000 and PPL 2001, located in the West Delta basin off Nigeria’s coast, covering roughly 2,000 square kilometers.

Under the agreement, TotalEnergies will remain the operator and retain a 40% interest, while Chevron, through its subsidiary Star Deep Water Petroleum, will acquire the 40% stake. The remaining 20% interest remains with South Atlantic Petroleum (SAPETRO).

This farm‑out agreement deepens a growing global partnership between TotalEnergies and Chevron, which earlier this year acquired a 25% interest in a portfolio of 40 Chevron-operated offshore blocks in the U.S. Gulf of Mexico from TotalEnergies.

Strategic Context for TotalEnergies

For TotalEnergies, this transaction reflects a carefully crafted strategy:

• The company seems focused on reducing risk and optimizing its exploration portfolio by bringing in a major partner for part of the offshore exposure.
• Maintaining operatorship ensures TotalEnergies still leads exploration and management decisions while sharing capital and risk with Chevron.
• The deal also aligns with TotalEnergies’ broader goal of repositioning its global offshore and gas footprint, especially after recent asset swaps and divestments in Nigeria.

Nigeria remains a key country for TotalEnergies. The firm has operated in Nigeria for decades, maintaining offshore licenses and producing both oil and gas.

By bringing Chevron on board, TotalEnergies may be better positioned to tackle the exploration, development, and financing challenges that come with deep‑water offshore projects. This also helps diversify risk across partners, a common approach when dealing with large offshore blocks.

What This Means for Chevron

For Chevron, acquiring a 40% stake in the Nigerian offshore licenses represents:

• A significant expansion of its offshore portfolio outside the U.S.
• A strengthening of its global upstream presence, especially in regions like West Africa, which remain attractive for deep‑water exploration.
• The opportunity to leverage TotalEnergies’ experience and operational control, while contributing capital and expertise to future exploration and development efforts.

For Chevron, this deal is clearly part of a larger effort to grow its global footprint and diversify geographical exposure beyond traditional U.S. and Gulf oil fields.

Implications for Nigeria’s Oil Sector

This transaction could have broader implications for the Nigerian oil and gas sector:

• The collaboration may attract more foreign investment, increasing development and exploration activity in offshore Nigerian waters.
• With two major investors working together, there may be more financial strength to unlock offshore potential, potentially boosting future output and reserves.
• The deal may prompt increased regulatory and oversight scrutiny, but it also signals confidence in Nigeria’s offshore licensing environment, which may encourage future bids and partnerships.

How This Fits Into TotalEnergies’ Recent Moves in Nigeria

This deal follows other strategic moves by TotalEnergies in Nigeria:

• In July 2024, TotalEnergies attempted to divest its 10% interest in a set of onshore licenses under the SPDC joint venture to a local firm. That sale was valued at around $860 million.
• However, as of September 2025, the regulatory body, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), withdrew its approval for the onshore sale, citing unmet financial obligations and failure to settle environmental liabilities on time.
• As a result, TotalEnergies remains exposed to onshore legacy issues, spills, maintenance costs, and social/environmental responsibilities.
• Given these challenges, the offshore deal with Chevron may reflect a deliberate pivot: double down on offshore and gas assets, where risk and liability are more manageable, while avoiding controversial onshore operations.

Potential Risks and What Could Go Wrong

While the deal makes sense strategically, it does come with uncertainties and risks:

• The transaction remains subject to regulatory approval. If Nigerian authorities delay or deny approval, the agreement may be delayed or fail altogether.
• Offshore exploration is inherently risky: deep‑water operations often come with high capital cost, technical complexity, and long lead times before returns, meaning cash flow may be delayed.
• Global energy markets are volatile. Oil price fluctuations, shifting energy demand, and regulatory or environmental pressure (especially around fossil fuels) could impact the profitability of any future discovery.
• The success of this collaboration depends on efficient coordination between partners. Differences in strategic priorities, capital commitments, or project pace could create friction.

What This Means for Investors & the Energy Market (Including Impact on Stock Sentiment)

For investors tracking TotalEnergies and the broader energy sector, this move could shape perceptions and valuations:

• For TotalEnergies, the deal signals a commitment to prudent risk management and strategic diversification. That may provide investors with confidence that the company is not overly reliant on legacy onshore assets in volatile regions.
• For oil markets, the partnership may increase expectations around future oil and gas output from Nigeria, potentially influencing supply forecasts.
• For “oil/gas stocks,” the collaboration could attract further interest from institutional investors seeking exposure to large offshore potential.
• In a wider thematic sense, as investors increasingly consider “clean energy transition,” such deals demonstrate that major energy firms still see value in traditional hydrocarbon exploration, especially offshore and in gas, as part of diversified portfolios.
• From a “stock research” perspective, this deal may impact how analysts view TotalEnergies’ long-term pipeline, reserves, and ability to generate future cash flow — possibly influencing share‑price outlooks. Mentioning “stock market” dynamics highlights why this transaction matters beyond oil fields.

Conclusion

The decision by TotalEnergies to sell a 40% stake in Nigerian offshore licenses to Chevron represents a calculated strategic move aimed at balancing risk, unlocking value, and ensuring long-term flexibility. By forging deeper collaboration with Chevron, TotalEnergies retains operational control while sharing capital intensity, risk, and potential upside.

For Nigeria, the deal may boost offshore exploration activity — a positive signal for foreign investment. For investors and the broader energy market, the deal underscores that major energy players continue to prioritize offshore and gas projects, even as global energy dynamics shift.

In a world where energy security, oil prices, and geopolitical dynamics remain uncertain, such joint‑venture deals may define which global oil companies emerge resilient and value‑oriented in the years ahead.

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