French energy giant, TotalEnergies, has announced a significant transaction in its Nigerian operations. The company confirmed on Monday the sale of a 40 per cent stake in its Nigerian offshore exploration licenses.
The buyer is Star Deep Water Petroleum Limited, a subsidiary of the US oil major, Chevron. This strategic move highlights ongoing shifts within Nigeria’s vibrant energy sector.
Continued Partnership and Operations
Despite the sale, TotalEnergies will remain the operator of these offshore blocks. The company will also maintain a 40 per cent stake, ensuring its continued presence and commitment to the projects. Their long-standing consortium partner, South Atlantic Petroleum, will retain the remaining 20 per cent interest.
TotalEnergies stated that this new partnership represents a further step in strengthening its global offshore collaboration with Chevron. The statement noted that both companies have recently deepened their cooperation, particularly through US offshore exploration leases.
Strategic Alignment with Nigeria’s Objectives
Nicola Mavilla, TotalEnergies’ Senior Vice-President for Exploration, commented on the transaction. He highlighted its alignment with Nigeria’s strategic objectives for offshore development. This venture aims to de-risk and unlock new opportunities within Nigeria.
The deal underscores the ongoing interest and investment by international oil companies in Nigeria’s rich oil and gas reserves, particularly in the deep water segment which is considered crucial for future production growth.
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