The company stated that the deal encompasses federal leases spanning approximately 1,000 square kilometers and is 175 to 330 kilometers from the coast.

TotalEnergies (TTE) said on Monday it would buy a 25% working interest in several oil and gas exploration areas in the U.S. operated by Chevron amid rising investments by foreign companies in American energy assets.

The company stated that the deal encompasses federal leases spanning approximately 1,000 square kilometers and is located 175 to 330 km from the coast, including 13 blocks in the Walker Ridge area, nine blocks in the Mississippi Canyon area, and 18 blocks in the East Breaks area.

“This transaction is in line with our consistent strategy of filling our Exploration portfolio with low-cost and low-emissions options, and will significantly expand TotalEnergies’ Offshore U.S. exploration acreage, combining a wide range of geological plays and prospectivity,” said Kevin McLachlan, Senior Vice President Exploration, in a statement.

The company did not reveal the financial details of the deal.

TotalEnergies has partnered with Chevron in several projects, including Ballymore, Anchor, Jack, and Tahiti oil-producing assets.

Global companies have been ramping up investments in U.S. projects amid the Trump administration's favorable policies.

The president has withdrawn the U.S. from the Paris climate agreement and urged energy firms to increase oil production to lower fuel prices.

However, U.S. oil and gas firms have taken a cautious approach this year, including some production curtailments following a slump in oil prices due to concerns about oversupply.

Chevron stock has fallen 5.1% this year.

The company is in an arbitration battle with peer Exxon Mobil over Hess’s Guyana assets. The dispute has delayed closing the company’s $53 billion buyout of Hess.

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