Gulf of Mexico offshore exploration expands as TotalEnergies invests billions to strengthen U.S. energy production capabilities
Three Key Facts
- TotalEnergies acquires 25% stake in 40 Gulf of Mexico leases from Chevron, covering approximately 1,000 km² across Walker Ridge, Mississippi Canyon, and East Breaks areas
- $11 billion U.S. investment commitment since 2022 positions TotalEnergies as the leading U.S. LNG exporter with over 10 million tons of output in 2024
- Strategic partnership expansion builds on successful projects including Ballymore (first production this year) and Anchor (production commenced last year)
Introduction
TotalEnergies expands its U.S. offshore presence through a strategic acquisition of exploration rights from Chevron in the Gulf of Mexico. The French energy giant secures a 25% working interest in 40 offshore exploration leases spanning roughly 1,000 km² on the Outer Continental Shelf.
The transaction strengthens an already robust partnership between the two energy majors in one of the world’s most productive offshore regions. This move aligns with TotalEnergies’ strategy to enhance its exploration portfolio with low-cost, low-emission opportunities while leveraging advanced technology for future discoveries.
Key Developments
The acquired leases encompass three key areas of the Gulf of Mexico, located 175 to 330 kilometers from shore. Chevron maintains its role as operator across all 40 blocks, which include 13 in Walker Ridge, 9 in Mississippi Canyon, and 18 in East Breaks.
According to World Oil, this acquisition provides access to multiple exploration plays, complementing TotalEnergies’ existing Gulf of Mexico portfolio. The company currently holds stakes in several producing and recently launched projects in the region.
The partnership builds on successful collaborations including Ballymore, where TotalEnergies holds a 40% stake and achieved first production this year. The Anchor project, with TotalEnergies holding 37.14%, commenced production last year, alongside established assets like Jack (25%) and Tahiti (17%).
Market Impact
The transaction represents part of TotalEnergies’ substantial U.S. investment program, which totals nearly $11 billion since 2022. This commitment spans oil, liquefied natural gas, and low-carbon electricity sectors across the nation.
TotalEnergies has established itself as the leading exporter of U.S. LNG, with integrated operations producing over 10 million tons in 2024. The company operates across the entire LNG value chain, including upstream gas production assets in Texas and offshore facilities.
Industry analysts view the partnership as strategic consolidation in the Gulf of Mexico, where major energy companies continue prioritizing high-potential offshore projects despite global renewable energy transitions.
Strategic Insights
The acquisition reflects broader industry trends toward collaboration among energy companies to optimize operations and share costs in challenging market conditions. Deep-water exploration requires significant capital investment and technical expertise, making partnerships essential for risk mitigation.
TotalEnergies demonstrates its dual energy strategy through this transaction, balancing hydrocarbon development with renewable investments. The company allocated 35% of its $16.8 billion 2023 investment toward low-carbon energies while maintaining focus on high-potential hydrocarbon developments.
The Gulf of Mexico remains attractive for energy majors due to its established infrastructure, regulatory stability, and proven resource potential. Advanced 3D imaging technology enables companies to improve exploration success rates and reduce operational risks in these high-cost environments.
Expert Opinions and Data
Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies, emphasizes the strategic value of the transaction. “This transaction aligns with our strategy of enhancing our Exploration portfolio with low-cost and low-emission options, significantly expanding our offshore U.S. exploration acreage with diverse geological plays,” he states.
McLachlan highlights the technological approach driving the partnership’s potential success. “Building on the momentum of the recent Ballymore and Anchor startups, we are very pleased to expand our successful partnership with Chevron, and we expect to mature Exploration drill decisions on these blocks utilizing advanced 3D imaging technology to unlock large remaining U.S. Offshore production potential.”
TotalEnergies maintains a comprehensive U.S. presence beyond offshore operations, with 10 GW of onshore utility-scale solar, wind, and battery storage projects either installed or under construction. This integrated approach positions the company across multiple energy sectors within the American market.
Conclusion
The TotalEnergies-Chevron partnership expansion demonstrates how major energy companies balance traditional hydrocarbon development with evolving market demands. The transaction leverages proven collaboration models while incorporating advanced exploration technologies to maximize resource potential.
This strategic alliance reinforces the Gulf of Mexico’s continued importance in global energy supply chains, even as companies simultaneously invest in renewable energy transitions. The partnership positions both companies to capitalize on one of the world’s most prolific offshore basins while sharing operational risks and technical expertise.
