The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission, has signed a production sharing contract with TotalEnergies and South Atlantic Petroleum for Petroleum Prospecting Licences 2000 and 2001.
The blocks, awarded in the 2024 licensing round, cover about 2,000 square kilometres in the Niger Delta Basin.
TotalEnergies will hold an 80 per cent interest as operator, while Sapetro will take a 20 per cent stake.
The fiscal package features a $10m signature bonus, alongside production bonuses of two million barrels and four million barrels, or their cash equivalents, upon achieving output levels of 35 million and 100 million barrels, respectively.
Speaking at the signing ceremony for the Execution of the Production Sharing Contract with NNPC Limited and the TotalEnergies–Sapetro Consortium in Abuja on Monday, the NUPRC Chief Executive Officer, Gbenga Komolafe, said the deal marks “a new chapter” in Nigeria’s upstream oil and gas industry.
This development follows the commission’s move last month to unlock an additional 810,000 barrels per day from Nigeria’s deepwater fields through its new cluster and nodal development initiative.
Komolafe also praised President Bola Tinubu for reforms in the sector, including the 2024 executive orders on fiscal incentives, local content, and contract timelines, which he said had catalysed investment inflows.
