Nigeria has entered into a production-sharing contract with TotalEnergies and South Atlantic Petroleum (Sapetro) for two offshore blocks, a move aimed at spurring exploration and attracting investment under the country’s new oil framework.
The agreement covers petroleum prospecting licences 2000 and 2001, awarded during the 2024 licensing round, and spans approximately 2,000 square kilometers (772 square miles) in the Niger Delta Basin.
According to the Nigerian Upstream Petroleum Regulatory Commission, TotalEnergies will hold an 80% contractor interest while Sapetro retains 20%, Reuters reported.
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Nigeria, Africa’s largest oil producer, is seeking to revive its upstream industry at a time of global energy transition and reduced investment in fossil fuels.
“This PSC signals the start of a committed work programme that will help us unlock the untapped geological potential of our deepwater, expand our reserves, boost production, and strengthen Nigeria’s energy security,” said Gbenga Komolafe, Chief Executive of the commission.
The contract includes terms for signature and production bonuses, minimum work obligations, and profit-sharing arrangements, while also ensuring compliance with host community development requirements.
Environmental provisions are built into the deal as well, including funding for decommissioning and remediation to safeguard ecological standards.
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Image Credit: Reuters
