Total Acquires 25% Stake in 40 Offshore Blocks from Chevron

Total, a multinational integrated oil and gas company, and Chevron, an energy corporation, announced that Total has acquired a 25% working interest in a portfolio of 40 offshore exploration blocks from Chevron. The acquisition covers an area of approximately 1,000 square kilometers, located between 175 and 330 kilometers from the coastline. The portfolio includes 13 blocks in the Walker Ridge area, 9 blocks in the Mississippi Canyon, and 18 blocks in the East Breaks region.

This acquisition allows Total to diversify its offshore exploration assets and further deepen its strategic partnership with Chevron in the development of offshore oil and gas in the United States. The collaboration is built upon the existing joint ventures between the two companies, including the Balmoral project, which began production this year with Total holding a 40% stake, the Anchor project, which began production last year with Total holding a 37.14% stake, and the Jack and Tahiti assets, which are currently in production with Total holding a 25% and 17% stake, respectively.

Patrick Pouyanne, the Chief Executive Officer of Total, revealed that the company plans to allocate 30% of its capital expenditure to the development of its integrated power business. Pouyanne stated that Total aims to increase the share of its power business in its overall portfolio to 20% by 2030. This strategic move aligns with Total's broader goal of transitioning towards a more diversified and sustainable energy mix, leveraging its expertise in both oil and gas, as well as renewable energy sources.

This acquisition is a significant step for Total in expanding its presence in the U.S. offshore oil and gas sector. By acquiring a stake in these exploration blocks, Total gains access to potentially lucrative oil and gas reserves, which can contribute to its long-term growth and profitability. The partnership with Chevron, a well-established player in the industry, provides Total with the necessary expertise and resources to successfully explore and develop these assets.

The acquisition also underscores Total's commitment to diversifying its energy portfolio. By investing in offshore exploration, Total is positioning itself to benefit from the growing demand for oil and gas, while also exploring opportunities in the renewable energy sector. This balanced approach allows Total to mitigate risks associated with fluctuations in energy prices and regulatory changes, ensuring its long-term sustainability.

In summary, Total's acquisition of a 25% working interest in 40 offshore exploration blocks from Chevron represents a strategic move to diversify its energy portfolio and deepen its partnership with Chevron. This acquisition not only expands Total's presence in the U.S. offshore oil and gas sector but also aligns with its broader goal of transitioning towards a more diversified and sustainable energy mix. The collaboration with Chevron provides Total with the necessary expertise and resources to successfully explore and develop these assets, ensuring its long-term growth and profitability.