TotalEnergies SE (TTE) is reshuffling its Nigerian offshore portfolio, and Chevron Corporation (CVX) is stepping in as a major new partner. The French energy giant announced Monday that TotalEnergies EP Nigeria has agreed to sell a 40% interest in two exploration licenses—PPL 2000 and PPL 2001—to Star Deep Water Petroleum Limited, a Chevron subsidiary.
It's the kind of deal that makes sense when you zoom out. These two companies have been building a broader offshore partnership, and this Nigerian transaction fits neatly into that strategy. The offshore blocks in question sit in Nigeria's West Delta basin and cover about 2,000 square kilometers of exploration territory. Originally awarded to a consortium of TotalEnergies and South Atlantic Petroleum, the blocks are now getting a third major player.
How the New Structure Looks
Once the deal closes, TotalEnergies will remain the operator but will hold a 40% stake instead of its previous larger position. Chevron will also own 40%, while South Atlantic Petroleum retains a 20% interest. It's a balanced setup that gives both oil majors equal skin in the game while keeping a local partner involved.
Nicola Mavilla, Senior Vice-President Exploration at TotalEnergies, framed the move as aligned with Nigeria's development objectives: "This new joint venture aims at derisking and developing new opportunities in Nigeria, in line with the objectives of the country."
Part of a Bigger Partnership
This isn't the first time these two have teamed up on offshore assets. Back in June, Chevron acquired a 25% interest in a portfolio of 40 Chevron-operated U.S. offshore blocks. That deal and this one signal an ongoing collaboration between the companies, with each transaction expanding their joint footprint across different geographies.
It's a classic swap-and-share arrangement: one company brings operational expertise and regional knowledge, the other brings capital and technical resources, and both spread out their risk while accessing new opportunities.
TotalEnergies' Recent Moves
Meanwhile, TotalEnergies has been busy on other fronts. In November, the company disclosed plans to acquire a 50% stake in a flexible power generation portfolio from Energetický a průmyslový holding, a.s. (EPH) at an enterprise value of 10.6 billion euros, or roughly $12.3 billion.
That acquisition includes over 14 GW of flexible generation capacity spanning gas-fired plants, biomass facilities, and batteries—either operational or under construction. It's part of TotalEnergies' broader push into energy transition and power generation, complementing its traditional oil and gas operations.
What About Chevron for Investors?
If you're considering Chevron as an investment, there are a few things worth noting beyond the deal flow. The company pays a dividend yielding 4.58% per year as of the closing price on December 1, 2025. For income-focused investors, that's a solid baseline return before you even factor in potential stock appreciation.
Capital allocation matters, too. Chevron maintains both a dividend program and periodically engages in share buyback programs, which can provide support for the stock price by creating consistent demand. Buyback programs are typically approved by the board and executed over time, often serving as a backstop during periods of market volatility.
Price Action: TTE shares were up 0.05% at $65.74 in premarket trading on Monday.