TotalEnergies Expands Strategic Exploration Collaboration with Chevron Through Major Farmout Deal in Nigeria
TotalEnergies has taken another significant step in strengthening its global exploration partnership with Chevron, following months of discussions between the two companies aimed at identifying mutually beneficial upstream opportunities. In a newly announced development, TotalEnergies EP Nigeria has finalized a farmout agreement to transfer a 40% participating interest in the PPL 2000 and PPL 2001 offshore exploration licenses to Star Deep Water Petroleum Limited, a subsidiary of Chevron. This agreement marks another chapter in the evolving relationship between the two energy giants, reinforcing their joint ambition to expand offshore exploration and unlock new hydrocarbon resources in key global basins.
The PPL 2000 and PPL 2001 licenses, which cover roughly 2,000 square kilometers in total, are located in the prolific West Delta Basin offshore Nigeria. This region has long been recognized as one of West Africa’s most resource-rich offshore zones, home to several world-class oil and gas discoveries that have shaped Nigeria’s upstream sector for decades. Both licenses were awarded in 2024 to a consortium comprising TotalEnergies and South Atlantic Petroleum (SAPETRO) as part of the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) 2024 Exploration Round—a competitive licensing program aimed at revitalizing exploration activities and increasing reserve additions.
Under the terms of the farmout, TotalEnergies will maintain operatorship of both licenses while holding a 40% interest. Chevron, through Star Deep Water Petroleum Limited, will assume a matching 40% stake, and SAPETRO will retain the remaining 20%. This balanced structure reflects a strategic alignment of capabilities: TotalEnergies brings decades of deepwater operational experience in Nigeria, Chevron contributes technical and financial strength as a long-established deepwater player, and SAPETRO offers local knowledge and stakeholder engagement capacity.
The new partnership is also notable for its connection to a broader wave of collaboration between TotalEnergies and Chevron. Earlier in June, TotalEnergies acquired a 25% working interest in a portfolio of Chevron-operated exploration leases offshore the United States. That transaction included 40 offshore blocks and set the stage for a long-term collaborative exploration strategy between the two companies. With the extension of their partnership into Nigeria, the cooperation now spans multiple continents—highlighting shared ambitions in frontier and emerging deepwater regions.
Commenting on the agreement, Nicola Mavilla, Senior Vice-President Exploration at TotalEnergies, emphasized the strategic importance of expanding the partnership into West Africa. “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,” he stated. Mavilla noted that the farmout is aligned not only with TotalEnergies’ exploration objectives, but also with Nigeria’s broader energy development priorities. “This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country,” he added.
For Nigeria, the entry of Chevron as a partner on the licenses is a positive signal at a time when the country is seeking to rejuvenate its upstream sector. The NUPRC’s 2024 Exploration Round was designed to encourage fresh investment and reverse the downward trend of reserve replacement witnessed in recent years. By attracting two global supermajors into the same exploration venture, the PPL 2000 and 2001 blocks could become flagship assets for Nigeria’s new exploration era. The involvement of such well-established deepwater operators also increases the likelihood of accelerated exploration activity, which supports the Nigerian government’s objectives of boosting future production, reinforcing energy security, and enhancing foreign investment inflows.
From a technical perspective, the West Delta Basin contains both mature producing zones and underexplored frontier areas. The new licenses are believed to offer promising geological structures, including prospects with significant potential for oil and natural gas discoveries. With growing demand for cleaner fuels, the region’s gas potential is particularly important as Nigeria continues its push for domestic gas expansion under the Decade of Gas initiative.
The deepwater environment also plays to the strengths of both TotalEnergies and Chevron. TotalEnergies has been a long-time leader in Nigeria’s offshore sector, including operatorship of major assets such as the Egina field, one of the country’s largest deepwater developments. Chevron, meanwhile, has decades of technical expertise in deepwater exploration across West Africa and the Gulf of Mexico. Their combined capabilities could enable efficient seismic acquisition, advanced imaging, and high-impact drilling campaigns aimed at derisking the basin.
Industry analysts have noted that the collaboration between the two companies is part of a broader industry trend in which international oil companies continue to share exploration risks through partnerships. As exploration becomes increasingly complex and capital-intensive—particularly in deepwater frontiers—joint ventures offer a pragmatic way to diversify portfolios while maintaining exposure to high-value opportunities.
While the farmout agreement represents a significant milestone, its completion remains subject to standard closing conditions, including regulatory approvals by Nigerian authorities. Such approvals are expected to focus on compliance with local content regulations, beneficial ownership disclosures, and financial capability requirements.
Once completed, the partnership is expected to advance work programs linked to seismic acquisition, geological studies, and eventual exploratory drilling. The timeline for drilling operations will depend on regulatory timelines, data acquisition, interpretation results, and final investment decisions.
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