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TTE Expands Offshore Exploration Portfolio With Nigerian Licenses

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Key Takeaways

  • TotalEnergies and partner South Atlantic Petroleum signed Nigerian offshore exploration contract.
  • TTE holds 80% of the licenses spanning 772 square miles, with one firm exploration well planned.
  • TTE is strengthening its exploration portfolio with low-cost, low-emissions offshore opportunities.

TotalEnergies SE (TTE - Free Report) , along with its partner South Atlantic Petroleum, has signed the production sharing contract for the PPL2000 and PPL2001 exploration licenses offshore Nigeria, following the Nigerian Upstream Petroleum Regulatory Commission's 2024 Exploration Round. South Atlantic Petroleum holds a 20% stake, while TotalEnergies holds the remaining 80%.

The exploration licenses are situated in the rich West Delta basin and span an area of about 772 square miles (2,000 square kilometers). The work program covers drilling one firm exploration well.

TTE’s Focus on Opportunities for Offshore Exploration

TotalEnergies' strategy of boosting its exploration portfolio with drill-ready and high-impact prospects (that have the potential for low-cost and low-emissions developments from fresh discoveries in its key areas of expertise) has been completed with the capture of these attractive blocks.

This announcement follows the awarding of the Nzombo exploration permit in the Republic of the Congo to TotalEnergies (50%, operator), its partners QatarEnergy (35%), and the national company SNPC (15%). The initiative is in line with TTE's ongoing objective of growing its exploration portfolio by utilizing its current facilities to investigate high-impact prospects.

In June 2025, TotalEnergies announced the acquisition of a 25% working interest in a portfolio of exploration leases Offshore U.S. from Chevron Corporation (CVX - Free Report) . This deal would increase TotalEnergies' offshore U.S. exploration acreage, combining a variety of geological features and prospectivity. 

Additionally, TotalEnergies is increasing its presence in Southeast Asia by acquiring interests in blocks offshore Malaysia and Indonesia from PETRONAS, with a focus on gas and liquefied natural gas.

Growth of the Exploration portfolio

Oil and gas companies’ offshore holdings provide a number of advantages, primary among them being access to enormous and unexplored resources beneath the ocean floor. The offshore fields are key to providing a consistent, reliable supply of gas and oil to both domestic and international markets, as well as meeting the expanding worldwide demand for energy. Along with TTE, other oil and gas companies like Murphy Oil Corporation (MUR - Free Report) and ExxonMobil Corporation (XOM - Free Report) are also focused on offshore exploration opportunities. 

Murphy Oil is leveraging a unique combination of development and exploration opportunities in Vietnam and Côte d'Ivoire. The company is currently focused on investigating substantial resource potential, as demonstrated by its recent findings in the Hai Su Vang and Pink Camel fields. This helps contribute to MUR’s diverse offshore asset base.

The Zacks Consensus Estimate for MUR’s 2025 sales indicates a year-over-year decrease of 12.6%. It delivered an average earnings surprise of 1.3% in the last four quarters. 

ExxonMobil is actively involved in offshore oil and gas exploration, with a particular focus on deepwater projects globally. The company has significant acreage positions and ongoing exploration activities in areas like Guyana, Brazil and the Eastern Mediterranean. Additionally, ExxonMobil is pursuing exploration opportunities offshore India. 

XOM’s long-term earnings growth rate is 8.19%. It delivered an average earnings surprise of 3.6% in the last four quarters.

TTE Stock’s Price Performance

In the past month, shares of TotalEnergies have risen 5.2% compared with the industry’s 6.1% growth.    

 

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TTE’s Zacks Rank

The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 

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