The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed a production-sharing contract (PSC) with TotalEnergies and local firm South Atlantic Petroleum for two offshore blocks, in a step to boost exploration and attract investment.
The deal, which is part of efforts to revitalize its upstream sector amid global energy transition pressures and declining investment in fossil fuels, 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.
TotalEnergies would hold an 80% contractor interest, while Sapetro holds 20% according to NUPRC. 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.
Speaking on the deal, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, said, “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.”
