French energy giant TotalEnergies has outbid Chevron to secure a valuable deepwater oil block in Nigeria. The block, located northwest of Shell’s massive Bonga field, was part of Nigeria’s latest licensing round.
This licensing exercise combined a 2024 bidding process with a delayed deepwater round from 2022. TotalEnergies emerged as the only major international oil company to win a block during the auction.
Other successful bidders included First Exploration & Petroleum Development Company (First E&P) and Sahara Group. However, Nigeria’s state-owned oil company, NNPC, did not secure any blocks.
Strategic Significance
The new block is expected to bolster TotalEnergies’ presence in Nigeria, a country that remains a key player in Africa’s oil and gas industry. With its extensive offshore infrastructure and experience, the French company is well-positioned to develop this promising asset.
This win also reflects the competitive nature of Nigeria’s oil and gas sector, as global players continue to vie for high-value resources in one of the continent’s most oil-rich regions.
Supporting Nigeria’s Energy Goals
Nigeria’s government hopes this licensing round will attract investment to its oil sector, drive production growth, and generate revenue for the country. As Nigeria seeks to maximise its deepwater potential, the participation of companies like TotalEnergies could bring much-needed expertise and technology to these projects.
The acquisition by TotalEnergies marks another milestone in its long-standing partnership with Nigeria, as the company continues to play a critical role in the nation’s energy landscape.