Nigeria signs contract for deepwater oil with TotalEnergies

Nigeria signed a Production-Sharing Contract (PSC) for two offshore blocks with TotalEnergies, and South Atlantic Petroleum. The contract is part of a new oil framework that aims to increase exploration and attract investors.

Nigeria, Africa’s largest oil exporter, seeks to revitalize its upstream industry amid global energy transition and declining investments in fossil fuels.

The deal includes petroleum prospecting licenses 2000 and2001, which were awarded in the licensing round of 2024. It covers approximately 2,000 square kilometers (772 square miles), and is located within the Niger Delta Basin. TotalEnergies has an 80% contractor stake, while Sapetro is 20%, according to the upstream oil regulator.

Gbenga Kmolafe is the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission.

The contract contains provisions on signature and production bonus, minimum work guarantee, profit sharing, and compliance to host community development obligations. The contract also includes environmental safeguards such as decommissioning funds and remediation funds. (Additional reporting from Isaac Anyaogu, Lagos. Writing by Chijioke Ahuocha. Editing by Tomaszjanowski)

(source: Reuters)