French oil and gas company Total (TOT - Get Report) announced on Friday that its subsidiary Total E&P USA, Inc. has reached an agreement to acquire seven prospects operated by Chevron (CVX - Get Report) in the deepwater Gulf of Mexico.
"The associated prospects are located in two promising plays and areas of the GoM: Wilcox in Central GoM next to the Anchor discovery, and Norphlet in Eastern GoM nearby to the Appomattox discovery," Total said.
Total's complete participation at these sites will be between 25% and 40%. The initial drilling at these wells commended late July.
"This agreement, together with the recently announced participation in the Jack field as part of the Maersk Oil acquisition, increases Total's footprint in the USA GoM where it can apply its exploration expertise and deepwater technologies. Total values Chevron's performance as a GoM deepwater company and this agreement expands a successful co-ownership already in place on the Tahiti field", stated Arnaud Breuillac, President Exploration & Production.
"As a continued effort to highgrade its portfolio, Total won six offshore exploration licenses in the August Lease Sale."
Shares of both Total and Chevron were both rising in afternoon trading on Friday.
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