Nigeria signs major 80%, 20 % oil deal with TotalEnergies and Sapetro

Nigeria has entered a new production-sharing contract with French energy giant TotalEnergies and local partner South Atlantic Petroleum (Sapetro) as part of efforts to revive exploration and attract fresh investment under the country’s new oil framework.

The deal covers petroleum prospecting licenses (PPL) 2000 and 2001, awarded during the 2024 licensing round. The offshore blocks span about 2,000 square kilometres in the Niger Delta Basin.

TotalEnergies will hold an 80 percent contractor interest, while Sapetro takes the remaining 20 percent, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Gbenga Komolafe, Chief Executive of the NUPRC, described the agreement as a significant step toward boosting exploration and shoring up Nigeria’s energy future.

“This PSC signals the start of a committed work program that will help us unlock the untapped geological potential of our deepwater, expand our reserves, boost production, and strengthen Nigeria’s energy security,” he said.

The contract also contains provisions for signature and production bonuses, minimum work guarantees, and profit-sharing mechanisms. In line with Nigeria’s oil laws, it requires compliance with host community development obligations and includes environmental safeguards such as decommissioning and remediation funds.

Nigeria, Africa’s largest oil producer, has been seeking ways to reinvigorate its upstream oil sector at a time of declining global investment in fossil fuels and growing calls for energy transition.

Officials say the new contract is expected to reassure investors and drive renewed interest in the country’s oil and gas industry.