Total and Chevron ink exploration agreement in the Gulf of Mexico

Total (LSE:TTA) and Chevron (NSE:CVX) have signed an agreement for exploration in the Gulf of Mexico, which will see the former capture seven deepwater prospects operated by Chevron.

The French oil major will gain the right to explore the associated prospects in two promising plays and areas, located in the central and Eastern regions of the gulf. Total’s participation in the wells will be between 25% and 40%.

“This agreement increases Total’s footprint in the US Gulf of Mexico where it can apply its exploration expertise and deepwater technologies,” said Arnaud Breuillac, Total’s president of exploration and production.

“Total values Chevron’s performance as a Gulf of Mexico deepwater company and this agreement expands a successful co-ownership already in place on the Tahiti field.

“As a continued effort to highgrade its portfolio, Total won six offshore exploration licenses in the August lease sale.”

Total’s current interests in the gulf include a 17% stake in the Tahiti field, 33.33% of Chinook and 40% of North Platte with 40%, while its recent acquisition of Maersk Oil meant it will become a 25% partner in the Chevron’s Jack field.