… completion of farmout transaction subject to NUPRC’s approvals, customary conditions

Adeshewa Precious

TotalEnergies EP Nigeria has signed a farmout agreement to sell to Star Deep Water Petroleum Limited, a Chevron company, a 40% participation in the PPL 2000 and PPL 2001 exploration licenses, offshore Nigeria.

Nicola Mavilla, Senior Vice-President Exploration at TotalEnergies, confirmed this in a statement obtained by Advisors Reports on Monday.

According to him, this development is sequel to the ongoing discussion of global exploration opportunities between TotalEnergies and Chevron.

TotalEnergies confirmed that it will remain operator with a 40% participation alongside Chevron (40%) and South Atlantic Petroleum (20%).

Advisors Reports gathered that the PPL 2000 & 2001 licenses, located in the prolific West Delta basin, are covering an area of approximately 2,000 square kilometers.

They were awarded to a consortium of TotalEnergies and South Atlantic Petroleum following the 2024 Exploration Round organized by the Nigerian Upstream Petroleum Regulatory Commission.

This new joint venture reinforces TotalEnergies’ global offshore exploration collaboration with Chevron, following the June acquisition of a 25% working interest in a portfolio of exploration leases Offshore U.S. comprising 40 Chevron-operated blocks.

Nicola Mavilla further said, “After launching our joint venture in US offshore exploration in June, we’re delighted to now expand our collaboration to Nigeria to unlock new resources in the West Delta basin.

“This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country,” Senior Vice-President Exploration at TotalEnergies noted.

Advisors Reports also gathered that the completion of the farmout transaction between TotalEnergies EP Nigeria with Chevron is subject to customary conditions, including NUPRC’s approvals.

Industry estimates reviewed by Advisors Reports indicate that Chevron’s total hydrocarbon output in Nigeria is projected to fall within 187,000 and 337,000 barrels of oil equivalent per day (boe/d), translating to an annual production range of 68.4 million to 123.1 million boe.

In comparison, TotalEnergies’ hydrocarbon production in Nigeria is assessed at 188,000 to 235,000 boe/d, with a central estimate of 209,000 boe/d.

On an annualised basis, this equates to between 68.6 million and 85.8 million barrels of oil equivalent.