Nigeria Signs Offshore Production-Sharing Contract with TotalEnergies and Sapetro to Boost Exploration
Nigeria has signed a production-sharing contract (PSC) with TotalEnergies and local firm South Atlantic Petroleum (Sapetro) for two offshore blocks, aiming to attract investment and accelerate exploration under the country’s new oil framework.
As Africa’s largest oil producer, Nigeria seeks to revitalize its upstream sector amid global energy transition pressures and declining fossil fuel investments.
The agreement covers petroleum prospecting licences (PPL) 2000 and 2001, awarded during the 2024 licensing round, spanning roughly 2,000 square kilometers (772 square miles) in the Niger Delta Basin.
TotalEnergies holds an 80% contractor interest, while Sapetro owns 20%, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Strategic Goals and Work Program
Gbenga Komolafe, Chief Executive of NUPRC, stated that the PSC establishes a committed work program to:
Unlock deepwater geological potential
Expand oil reserves
Increase production
Strengthen Nigeria’s energy security
The contract outlines signature and production bonuses, minimum work commitments, profit-sharing arrangements, and host community development obligations.
It also includes environmental safeguards, such as decommissioning and remediation funds, ensuring sustainable operations.
The deal represents a key milestone in Nigeria’s efforts to modernize its oil sector, encourage foreign and local investment, and optimize the country’s offshore resources in line with global energy trends.
