TotalEnergies enters 40 Chevron-operated US offshore blocks

By America Hernandez

PARIS -French oil major TotalEnergies has acquired a 25% interest in a Chevron-operated portfolio of 40 federal exploration leases offshore the U.S., in the Gulf of Mexico, it said on Monday.

The outer continental shelf leases include 13 blocks in the Walker Ridge area, 9 blocks in the Mississippi Canyon area and 18 blocks in the East Breaks area. 

The company said the acquisitions will bolster its target to increase production of low-cost, low-emissions oil and gas by 3% annually through 2030.

Total already has minority stakes in four offshore oil and gas fields operated by the Texas-based Chevron in the Gulf of Mexico.

While the French oil major is the single largest purchaser and exporter of U.S. liquefied natural gas (LNG), with more than 10 million metric tons under long-term contract annually, it has largely preferred buying that gas from local producers.

Last year Total purchased stakes in two Texas upstream shale fields from Lewis Energy Group, so that the company would have direct access to gas at the U.S. Henry Hub benchmark price in case LNG export costs rose.

(Reporting by America Hernandez in Paris, Editing by Louise Heavens, Alexandra Hudson)