Nigeria has signed a new Production Sharing Contract (PSC) with a consortium led by French energy major TotalEnergies and local firm South Atlantic Petroleum (SAPETRO) for two offshore blocks.
The agreement, which was finalized in Abuja, is seen as a direct result of the new, investment-friendly framework established under the country’s Petroleum Industry Act (PIA).
The deal grants the consortium exploration and development rights for two deepwater blocks, Petroleum Prospecting Licences (PPLs) 2000 and 2001, which span approximately 2,000 square kilometers in the prolific Niger Delta Basin.
TotalEnergies will hold an 80% contractor interest, with SAPETRO holding the remaining 20%.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Gbenga Komolafe, hailed the contract as a “landmark achievement that will unlock the nation’s vast untapped deepwater assets, expand reserves, and boost production”.
TotalEnergies has a long-standing history of over 60 years with Africa’s largest oil producer – Nigeria, and this new agreement reinforces its commitment to the country’s energy sector. Similarly, SAPETRO has been a key player for over 30 years, holding interests in other major deepwater fields like OML 130, which contains the prolific Akpo and Egina fields.
The new PSC, which was a product of the 2024 licensing round, is designed to be transparent and competitive. According to Komolafe, its terms include a signature bonus, production bonuses tied to commercial milestones, and a defined minimum work program.
