Nigeria has signed a new deepwater oil contract with French oil and gas giant, TotalEnergies.
The contract, which is a Production-Sharing Contract (PSC), also includes local firm South Atlantic Petroleum, and will involve two offshore blocks.
The deal was done in a step to boost exploration and attract investment under its new oil framework.
Nigeria, Africa’s largest oil producer, is seeking to revitalize its upstream sector amid global energy transition pressures and declining investment in fossil fuels.
The deal covers petroleum prospecting licences 2000 and 2001, awarded during the 2024 licensing round, and spans about 2,000 square km (772 square miles) in the Niger Delta Basin.
Already, TotalEnergies holds an 80 per cent contractor interest, while Sapetro holds 20 per cent, the upstream oil regulator said on Monday.
Speaking on the deal, Mr Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), said this will help Nigeria tap into its underutilized reserves and help boost production.
“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,” he said.
The contract includes provisions for signature and production bonuses, minimum work guarantees, profit-sharing, and compliance with host community development obligations.
It also outlines environmental safeguards, including decommissioning and remediation funds.