Nigeria has signed a production-sharing contract (PSC) with TotalEnergies (TTEF.PA), and local firm South Atlantic Petroleum for two offshore blocks, in a step to boost exploration and attract investment under its new oil framework.

Nigeria, Africa’s largest oil producer, is seeking to revitalize its upstream sector amid global energy transition pressures and declining investment in fossil fuels.

The deal 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 holds an 80% contractor interest, while Sapetro holds 20%, the upstream oil regulator said on Monday.

“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,” said Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission.

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.
Source: Reuters (Additional reporting by Isaac Anyaogu in Lagos Writing by Chijioke Ohuocha Editing by Tomasz Janowski)