Nigeria Signs Oil Deal with TotalEnergies
Nigeria has entered into a significant agreement with TotalEnergies and South Atlantic Petroleum (Sapetro) to explore offshore oil blocks 2000 and 2001, located in the Niger Delta Basin.
The deal, formalized on September 1, 2025, involves a production-sharing contract (PSC) valued at $10 million. Under the terms, TotalEnergies will operate the blocks with an 80% stake, while Sapetro holds the remaining 20%.
The PSC includes provisions for signature and production bonuses, with payments tied to achieving specific output milestones. Additionally, the agreement outlines clear terms for cost recovery, profit-sharing, and environmental responsibilities, including decommissioning and remediation obligations.
Gbenga Komolafe, Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), emphasized that this partnership marks a new phase in Nigeria’s upstream oil and gas industry. He highlighted the government’s reforms, such as fiscal incentives and streamlined contract timelines, as pivotal in attracting investment.
Bayo Ojulari, Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), described the contract as unique, noting it is the first deepwater PSC awarded since the enactment of the Petroleum Industry Act.
The agreement comprehensively covers both crude oil and natural gas, with robust fiscal terms designed to incentivize production and ensure a fair return on investment.
Matthieu Bouyer, Country Chair of TotalEnergies in Nigeria, reaffirmed the company’s commitment to the country, highlighting its extensive presence and contributions to Nigeria’s energy sector. He expressed eagerness to implement the agreed work program for the blocks, aiming to enhance production and support local communities.
This development aligns with Nigeria’s broader strategy to boost oil output and attract foreign investment, as the country continues to navigate the evolving global energy landscape.
