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Chevron & TotalEnergies Deepen Offshore Exploration Ties in Nigeria
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Key Takeaways
CVX acquires a 40% interest in Nigeria's PPL 2000 and PPL 2001 offshore exploration blocks.
The deal strengthens CVX's collaboration with TotalEnergies across global deepwater projects.
The partnership supports Nigeria's push to boost production and attract new offshore investment.
Chevron Corporation (CVX - Free Report) is taking another meaningful step in strengthening its global exploration portfolio by entering Nigeria’s high-potential offshore acreage. Through a farm-in agreement with TotalEnergies SE’s (TTE - Free Report) Nigeria affiliate, Chevron will acquire a 40% interest in the PPL 2000 and PPL 2001 exploration licenses — an important foothold in one of West Africa’s most active and resource-rich basins. These blocks, spanning about 2,000 square kilometers, were awarded to a consortium of TotalEnergies and South Atlantic Petroleum in Nigeria’s 2024 Exploration Round. With this farm-in agreement, TotalEnergies will remain operator of the block with a 40% interest alongside Chevron (40%) and South Atlantic Petroleum (20%) and will position Chevron to unlock new deepwater resources alongside established partners.
Expanding a High-Value Global Collaboration
This agreement builds on Chevron’s growing partnership with TotalEnergies, following the French energy major’s June acquisition of a 25% working interest across 40 Chevron-operated U.S. offshore blocks. Extending the collaboration to Nigeria demonstrates Chevron’s commitment to leveraging joint expertise, reducing exploration risk and accelerating the development of high-impact opportunities in key global basins. These federal leases operated by CVX covered an area of approximately 1,000 square kilometers, with 13 blocks in the Walker Ridge area, 18 in East Breaks and the remainder in the Mississippi Canyon area.
Chevron’s latest acquisition further deepens its long-standing partnership with TotalEnergies, which already includes joint developments like Ballymore — operated by Chevron with a 60% stake — and collaborations in the Anchor, Jack and Tahiti projects in the Gulf of America. Building on recent milestones such as first oil at Anchor and the startup of Ballymore, the companies plan to apply advanced tools, including 3D imaging, to unlock additional offshore resource potential.
Global Energy Leaders Expand Their Footprint in Nigeria
Recently, leading oil companies have been strengthening their presence in Nigeria as the country works to boost oil and gas production and address issues like theft, oil spills and vandalism.
In May 2025, Shell plc (SHEL - Free Report) had acquired a 12.5% interest in Nigeria’s Bonga field located within the OML 118 Production Sharing Contract, increasing its total stake to 55% andJust last week, it increased its stake in the same field to 65% after acquiring an additional 10% interest, reinforcing its commitment to expanding deep-water output in the Bonga field.
In August 2025, Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) also hinted at its return to Nigeria’s oil market. Earlier, in the month of May, Nigeria’s foreign minister had said that the country was in discussion with Petrobras to pursue its deepwater exploration. After a decade-long absence, Petrobras too is signaling a renewed interest in Nigeria’s offshore frontier acreage, which is in sync with its aggressive investment blueprint through 2029.
Supporting Nigeria’s Energy Development Goals
Nigeria, which depends heavily on oil for the bulk of its export revenues, is working to restore output after years of limited investment and security issues in the Niger Delta. The initiative reflects president Bola Tinubu’s push to raise production, attract new investment and move the economy toward his $1-trillion goal.
On Dec. 01, 2025, Nigeria’s upstream regulator launched the 2025 oil licensing round, opening 50 blocks for bidding as the country aims to raise production and draw fresh investment. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the offering covers 15 onshore blocks, 19 shallow-water blocks, 15 frontier assets and one deepwater block. The round is expected to attract around $10 billion and could add up to 2 billion barrels over the next decade, with output potentially reaching 400,000 barrels per day once fully developed. NUPRC noted that winners from last year’s round have already paid signature bonuses and begun exploration work, but emphasized that new production will take time to come online.
Working with TotalEnergies as operator and South Atlantic Petroleum as a partner, Chevron, currently carrying a Zacks Rank #3 (Hold), aims to help advance Nigeria’s objectives of responsibly expanding its offshore resource base. The transaction remains subject to regulatory approvals, but once completed, it will enhance Chevron’s regional presence and contribute to new energy development pathways in the West Delta basin.
Image: Shutterstock
Chevron & TotalEnergies Deepen Offshore Exploration Ties in Nigeria
Key Takeaways
Chevron Corporation (CVX - Free Report) is taking another meaningful step in strengthening its global exploration portfolio by entering Nigeria’s high-potential offshore acreage. Through a farm-in agreement with TotalEnergies SE’s (TTE - Free Report) Nigeria affiliate, Chevron will acquire a 40% interest in the PPL 2000 and PPL 2001 exploration licenses — an important foothold in one of West Africa’s most active and resource-rich basins. These blocks, spanning about 2,000 square kilometers, were awarded to a consortium of TotalEnergies and South Atlantic Petroleum in Nigeria’s 2024 Exploration Round. With this farm-in agreement, TotalEnergies will remain operator of the block with a 40% interest alongside Chevron (40%) and South Atlantic Petroleum (20%) and will position Chevron to unlock new deepwater resources alongside established partners.
Expanding a High-Value Global Collaboration
This agreement builds on Chevron’s growing partnership with TotalEnergies, following the French energy major’s June acquisition of a 25% working interest across 40 Chevron-operated U.S. offshore blocks. Extending the collaboration to Nigeria demonstrates Chevron’s commitment to leveraging joint expertise, reducing exploration risk and accelerating the development of high-impact opportunities in key global basins. These federal leases operated by CVX covered an area of approximately 1,000 square kilometers, with 13 blocks in the Walker Ridge area, 18 in East Breaks and the remainder in the Mississippi Canyon area.
Chevron’s latest acquisition further deepens its long-standing partnership with TotalEnergies, which already includes joint developments like Ballymore — operated by Chevron with a 60% stake — and collaborations in the Anchor, Jack and Tahiti projects in the Gulf of America. Building on recent milestones such as first oil at Anchor and the startup of Ballymore, the companies plan to apply advanced tools, including 3D imaging, to unlock additional offshore resource potential.
Global Energy Leaders Expand Their Footprint in Nigeria
Recently, leading oil companies have been strengthening their presence in Nigeria as the country works to boost oil and gas production and address issues like theft, oil spills and vandalism.
In May 2025, Shell plc (SHEL - Free Report) had acquired a 12.5% interest in Nigeria’s Bonga field located within the OML 118 Production Sharing Contract, increasing its total stake to 55% andJust last week, it increased its stake in the same field to 65% after acquiring an additional 10% interest, reinforcing its commitment to expanding deep-water output in the Bonga field.
In August 2025, Petróleo Brasileiro S.A. - Petrobras (PBR - Free Report) also hinted at its return to Nigeria’s oil market. Earlier, in the month of May, Nigeria’s foreign minister had said that the country was in discussion with Petrobras to pursue its deepwater exploration. After a decade-long absence, Petrobras too is signaling a renewed interest in Nigeria’s offshore frontier acreage, which is in sync with its aggressive investment blueprint through 2029.
Supporting Nigeria’s Energy Development Goals
Nigeria, which depends heavily on oil for the bulk of its export revenues, is working to restore output after years of limited investment and security issues in the Niger Delta. The initiative reflects president Bola Tinubu’s push to raise production, attract new investment and move the economy toward his $1-trillion goal.
On Dec. 01, 2025, Nigeria’s upstream regulator launched the 2025 oil licensing round, opening 50 blocks for bidding as the country aims to raise production and draw fresh investment. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) said the offering covers 15 onshore blocks, 19 shallow-water blocks, 15 frontier assets and one deepwater block. The round is expected to attract around $10 billion and could add up to 2 billion barrels over the next decade, with output potentially reaching 400,000 barrels per day once fully developed. NUPRC noted that winners from last year’s round have already paid signature bonuses and begun exploration work, but emphasized that new production will take time to come online.
Working with TotalEnergies as operator and South Atlantic Petroleum as a partner, Chevron, currently carrying a Zacks Rank #3 (Hold), aims to help advance Nigeria’s objectives of responsibly expanding its offshore resource base. The transaction remains subject to regulatory approvals, but once completed, it will enhance Chevron’s regional presence and contribute to new energy development pathways in the West Delta basin.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.