Nigeria and TotalEnergies sign a deepwater oil contract
Nigeria has opened a new tab and local company, South Atlantic Petroleum, for two offshore blocks and inked a production-sharing contract (PSC) with TotalEnergies (TTEF.PA) in an effort to increase exploration and draw investment under its new oil framework.
Amidst the challenges of the global energy shift and dwindling investment in fossil fuels, Nigeria, Africa’s largest oil producer, is attempting to revive its upstream sector.
Covering over 2,000 square kilometers (772 square miles) in the Niger Delta Basin, the agreement includes petroleum exploration licenses 2000 and 2001 that were granted during the 2024 licensing round…. Sapetro has 20% of the contractor interest, while TotalEnergies owns 80%, the upstream oil regulator announced Monday.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stated, “This PSC marks the beginning of a dedicated work program that will help us unlock the untapped geological potential of our deepwater, expand our reserves, boost production, and strengthen Nigeria’s energy security.”
Signing and production bonuses, minimum work guarantees, profit-sharing, and adherence to host community development commitments are all covered under the contract. Environmental protections, such as decommissioning and remediation monies, are also described.
