Nigeria has signed a production-sharing contract (PSC) with TotalEnergies and local firm South Atlantic Petroleum for two offshore blocks, aiming to boost exploration and attract investment under its new oil framework.
As Africa’s largest oil producer, Nigeria aims to revitalize its upstream sector amid global energy transition pressures and falling fossil fuel investment.
The deal covers petroleum prospecting licences 2000 and 2001, awarded in the 2024 licensing round, and spans roughly 2,000 square km (772 square miles) in the Niger Delta Basin. TotalEnergies holds an 80% contractor interest, while Sapetro owns 20%, the Nigerian upstream oil regulator announced Monday.
Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, said the PSC launches a committed work program to unlock deepwater geological potential, expand reserves, increase production, and strengthen Nigeria’s energy security.
The contract requires signature and production bonuses, minimum work guarantees, profit-sharing, and adherence to host community development obligations. It also sets environmental safeguards, including decommissioning and remediation funds.
source: www.reuters.com
African Energy Council