Chevron’s subsidiary Star Deep Water Petroleum announced that it will acquire a 40% interest in the PPL 2000 and PPL 2001 offshore exploration licenses in Nigeria’s West Delta basin. The licenses, awarded to a consortium of TotalEnergies and South Atlantic Petroleum in the 2024 Nigerian Exploration Round, cover roughly 2,000 square kilometers of water depths ranging from shallow to ultra‑deep and are situated in a prolific petroleum system that has already produced significant discoveries.
The transaction gives Chevron a foothold in a region where it has limited exposure, while TotalEnergies retains a 40% stake and operatorship and South Atlantic Petroleum holds the remaining 20%. The deal price was not disclosed, and the transaction is subject to customary regulatory approvals, including clearance from the Nigerian Upstream Petroleum Regulatory Commission and the U.S. Department of Energy’s Office of Foreign Assets Control.
Strategically, the deal extends the growing partnership between Chevron and TotalEnergies from the U.S. Gulf of Mexico to Africa, reinforcing a model of shared risk and complementary expertise. For Chevron, the acquisition diversifies its offshore portfolio and provides access to a high‑grade, geopolitically stable asset base that can be leveraged alongside its existing operations in the Gulf of Mexico and Guyana. For TotalEnergies, the partnership allows it to share exploration risk while maintaining operational control, aligning with its broader strategy of streamlining its African portfolio and focusing on assets it operates.
Nigeria’s West Delta basin is one of the country’s most prospective offshore blocks, with a history of high‑grade discoveries and a geology that supports both oil and gas development. The basin’s proven reserves and the presence of advanced deep‑water drilling capabilities make it an attractive target for companies seeking to expand their deep‑water footprint in a country that remains Africa’s largest oil producer.
The completion of the transaction will depend on regulatory approvals and customary closing conditions. Once finalized, the joint venture will be able to accelerate exploration activities, potentially unlocking new reserves that could contribute to both companies’ long‑term production growth.
Nicola Mavilla, Senior Vice‑President of Exploration at TotalEnergies, said the new joint venture “aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country.” The partnership underscores both companies’ confidence in Nigeria’s regulatory environment and the geological potential of the West Delta basin, positioning them to capture future production upside while managing exploration risk.
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