French energy giant TotalEnergies has announced the sale of a 40 percent stake in its Nigerian offshore exploration licences to Star Deep Water Petroleum Limited, a subsidiary of US oil major Chevron.

The deal, reported by Reuters, covers two licence areas totaling 2,000 square kilometres in the West Delta basin and is subject to regulatory approval, TotalEnergies said in a statement on Monday.

Under the agreement, TotalEnergies will continue to operate the sites and retain a 40 percent interest, while its consortium partner, South Atlantic Petroleum (SAPETRO), will hold onto its 20 percent stake.

TotalEnergies described the partnership as a strategic move to strengthen its global offshore exploration collaboration with Chevron, following its recent acquisitions of stakes in US offshore exploration leases.

Nicola Mavilla, Senior Vice-President for Exploration at TotalEnergies, said the venture is designed to derisk and develop new opportunities in Nigeria, aligning with the country’s energy objectives.