TotalEnergies has announced the sale of a 40% stake in its offshore exploration licences PPL 2000 and PPL 2001 to Chevron, through its subsidiary Star Deep Water Petroleum Limited. These two blocks, located in the West Delta offshore basin off the Nigerian coast, are now jointly held by TotalEnergies (40%, operator), Chevron (40%) and South Atlantic Petroleum (SAPETRO, 20%).
Asset structure rebalanced to reduce risk
Awarded in 2024, the licences were converted into Production Sharing Contracts (PSC) in September 2025 under Nigeria’s Petroleum Industry Act (PIA). The work programme includes at least one committed exploration well, implying substantial initial capital exposure. Through this farm-out, TotalEnergies reduces both geological and financial risk while retaining operational control.
The presence of two supermajors in the same project could facilitate access to competitive financing, especially if synergies with existing infrastructure are identified. SAPETRO, a long-term local partner, now benefits from a reinforced alliance with international players, though its relative influence in technical and commercial governance is reduced.
Nigeria showcases its new regulatory framework
This partnership aligns with Nigeria’s strategy to reignite investor interest in its deepwater segment. Authorities, via the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), are using these blocks as a demonstration site for post-PIA policy. The current regulatory framework includes lighter taxation for deepwater and environmental requirements under the Upstream Petroleum Decarbonisation Template (UPDT).
Chevron thus strengthens its position in a key country by diversifying its portfolio beyond the Agbami field. For TotalEnergies, this partial sale follows recent moves to optimise its Nigerian exposure, including increasing its stake in OPL 257 to 90% and exiting the Bonga field.
Strong geopolitical and industry dimensions
The consolidation of Western presence in Nigerian deepwater comes as the country positions itself as an alternative to sanctioned producers. Nigeria is not under hydrocarbon embargo, but companies operating there remain subject to strict international compliance obligations (FCPA, UK Bribery Act). Chevron’s entry strengthens the US geopolitical foothold in a region where Chinese interest is also increasing.
In the medium term, the licences could evolve into major production hubs if discoveries are confirmed. Their proximity to existing offshore facilities could allow for development via tie-backs rather than standalone projects, optimising capital expenditure.
Financial and industrial implications for partners
For TotalEnergies, the deal frees up capital while maintaining strategic exposure to potential geological upside. The company thus reinforces its capital discipline by focusing on projects where it holds greater control. For Chevron, the entry represents a modular growth option in a familiar province, without immediate high CapEx commitments.
The transaction is also expected to boost the local supply chain, as Nigerian local content requirements remain stringent. Major oilfield service providers are likely to benefit from new opportunities, particularly in drilling, subsea equipment, and floating production systems.
