Nigeria has signed a landmark Production Sharing Contract with TotalEnergies and South Atlantic Petroleum covering two deepwater blocks in the Niger Delta Basin. The agreement, announced in Abuja, spans about 2,000 square kilometres and follows the 2024 licensing round.
The Nigerian Upstream Petroleum Regulatory Commission said the deal underlines efforts to unlock untapped offshore assets, boost reserves and secure long-term energy supply. Officials highlighted reforms introduced under the Petroleum Industry Act, including reduced upfront bonuses, clearer cost recovery rules, and strict host community and environmental obligations.
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TotalEnergies will hold an 80 percent stake in the venture, with Sapetro retaining 20 per cent. The contract includes a $10 million signature bonus, production-linked payments, and robust gas terms to encourage monetisation of reserves.
NNPC Limited, acting as concessionaire, described the deal as Nigeria’s first deepwater PSC with comprehensive gas provisions, aimed at accelerating investment and driving sustainability.
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