By John Umeh
Nigeria has entered into a new production-sharing agreement with French energy major TotalEnergies and indigenous partner South Atlantic Petroleum Limited (Sapetro) for the development of two offshore oil blocks, in a move designed to strengthen energy security and drive fresh exploration.
The pact, signed on Monday in Abuja, covers Petroleum Prospecting Licences (PPL) 2000 and 2001, both located in the Niger Delta Basin. Together, the blocks span roughly 2,000 square kilometres and were part of Nigeria’s 2024 licensing round.
Under the terms of the agreement, TotalEnergies will operate the blocks with an 80% contractor interest, while Sapetro will hold the remaining 20% stake, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Speaking at the signing ceremony, NUPRC’s Chief Executive, Gbenga Komolafe, described the deal as a turning point for Nigeria’s upstream sector. “This agreement marks the beginning of a committed work programme that will enable us to unlock the geological potential of our deepwater assets, grow reserves, expand production, and safeguard Nigeria’s energy future,” he said.
The contract falls under Nigeria’s updated oil industry framework and contains provisions for signature and production bonuses, minimum work obligations, profit-sharing arrangements, and host community development contributions. It also outlines environmental safeguards, including funds earmarked for decommissioning and remediation at the end of operations.
Nigeria, Africa’s largest oil producer, has faced mounting pressure to revive its upstream sector amid declining global investments in fossil fuels and the ongoing energy transition. Officials believe the new deal will help stabilize foreign exchange earnings and provide fresh opportunities for growth at a time of economic strain.
TotalEnergies, already one of Nigeria’s largest international oil partners, has been consolidating its African portfolio with new offshore exploration ventures, including recent acquisitions in the Congo Republic. Industry watchers say the company’s continued commitment to Nigeria signals confidence in the country’s regulatory reforms and long-term oil potential.
Government officials expressed optimism that the partnership with TotalEnergies and Sapetro would pave the way for future discoveries, create jobs, and contribute to sustainable development in host communities.
