TotalEnergies plans to sell a 40 per cent stake in two offshore exploration licenses in Nigeria to Chevron in a move aimed at strengthening collaboration between the French and American energy giants.
“This new joint venture aims at derisking and developing new opportunities in Nigeria … to unlock new resources in the West Delta basin,” Mr Nicola Mavilla, Total’s senior vice president of exploration, said in a statement reported by Reuters.
TotalEnergies has been present in Nigeria for more than six decades and produced 209,000 barrels of oil equivalent daily in the country in 2024 across its upstream portfolio. The company also operates a nationwide downstream network of more than 540 service stations.
Currently, Nigeria accounts for more than a third of TotalEnergies’ African oil and gas production and 8.5 per cent of its global hydrocarbons, though its output in the country has declined by a quarter over the past two decades.
Following the sale, TotalEnergies will remain the operator of the site with 40 per cent participation, alongside Chevron, also with 40 per cent, and South Atlantic Petroleum at 20 per cent.
TotalEnergies is now streamlining its African portfolio, focusing on assets it operates while seeking new sources of supply.
The French giant plans to cut annual capital spending by $1 billion and sell more power assets outside of its strategic US, European, British and Brazilian markets.
The capex cut, to $15–17 billion a year for 2027 to 2030, is part of a drive to save $7.5 billion, the oil major said in a statement.
The group also said last month it planned to reduce quarterly share buybacks as it adapts to lower oil prices.
In June, Chevron sold Total a 25 per cent interest in a portfolio of 40 US federal offshore leases for an undisclosed amount, as part of an exploration partnership between the majors.
Last week, TotalEnergies completed the sale of its 12.5 per cent non-operated stake in Nigeria’s deepwater Bonga field, valued at $510 million sale to oil majors, Shell Nigeria Exploration and Production Company Ltd. (10 per cent) and Nigerian Agip Exploration (2.5 per cent). The deal for the OML 118 Production Sharing Contract (PSC) increased Shell’s stake in Bonga to 67.5 per cent.