Nigeria Signs Deepwater Oil Deal with TotalEnergies to Boost Production and Energy Security

Nigeria has formalized a major deepwater oil agreement with French energy giant TotalEnergies and local partner South Atlantic Petroleum Limited (Sapetro), aiming to expand exploration and reinforce the country’s energy security. The production-sharing contract covers Petroleum Prospecting Licences 2000 and 2001, located in the prolific Niger Delta Basin.

The two offshore blocks span approximately 2,000 square kilometres and were awarded during Nigeria’s 2024 licensing round. Under the agreement, TotalEnergies will hold an 80% contractor interest, while Sapetro retains the remaining 20%, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Gbenga Komolafe, NUPRC’s chief executive, described the deal as “the start of a committed work programme that will unlock the untapped geological potential of our deepwater, expand reserves, boost production, and strengthen Nigeria’s energy security.” He emphasized that the project aligns with Nigeria’s broader strategy to revitalise its upstream oil sector amid global shifts toward cleaner energy.

The contract includes obligations such as signature and production bonuses, minimum work guarantees, profit sharing, and host community development. It also contains environmental safeguards, including dedicated funds for decommissioning and remediation, highlighting the government’s commitment to sustainable oil operations.

Officials in Abuja noted that the agreement will serve as a platform for future discoveries and help bolster Nigeria’s foreign exchange earnings during a period of fiscal pressures. TotalEnergies, which has been expanding across Africa, including securing new offshore exploration rights in the Congo Republic, continues to strengthen its footprint in Nigeria’s energy sector.

Source: The Guardian