The Federal Government of Nigeria has signed a landmark Production Sharing Contract (PSC) with TotalEnergies and South Atlantic Petroleum (Sapetro) for Petroleum Prospecting Licences (PPLs) 2000 and 2001, awarded in the 2024 Licensing Round. The agreement, signed under the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), covers approximately 2,000 square kilometres in the Niger Delta Basin. TotalEnergies will operate with an 80% interest, while Sapetro holds 20%. The fiscal terms include a $10 million signature bonus and performance-tied production bonuses of two million and four million barrels.
NUPRC Chief Executive, Gbenga Komolafe, praised the deal as a “new chapter” for Nigeria’s upstream sector, aligning with President Bola Tinubu’s reform agenda and the Petroleum Industry Act (PIA). He emphasized that the PSC includes clear terms on cost recovery, royalties, host community obligations, and gas monetisation, setting a precedent for transparency and value creation.
Bayo Ojulari, Group CEO of NNPC Limited, described the contract as Nigeria’s first deepwater PSC under the PIA to comprehensively include both oil and natural gas, with strong performance incentives and a 70% cost recovery cap. TotalEnergies Country Chair Matthieu Bouyer reaffirmed the company’s longstanding commitment to Nigeria, highlighting plans to leverage its offshore expertise to boost production and support the country’s ambition to reach 3 million barrels per day. The consortium aims to implement low-cost, low-emissions development strategies and expand Nigeria’s investment footprint.
