TotalEnergies, Sapetro Seal Landmark Offshore PSCs in Nigeria’s West Delta Basin

Photo Credit: TotalEnergies

Abuja, Nigeria | 1 September 2025 — Nigeria’s upstream sector took a major step forward as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian National Petroleum Company Limited (NNPCL) signed a Production Sharing Contract (PSC) for offshore Petroleum Prospecting Licences PPL 2000 and PPL 2001 with TotalEnergies, which holds 80 percent as operator, and South Atlantic Petroleum (Sapetro), which holds 20 percent. The licences cover approximately 2,000 square kilometres in the prolific West Delta Basin.

The agreement follows Nigeria’s 2024 Licensing Round, the first competitive bid process under the Petroleum Industry Act (PIA) of 2021. It represents, in the words of TotalEnergies, “the first award to an international company in a Nigerian bid round in more than a decade.” NUPRC Chief Executive Engr. Gbenga Komolafe described the deal as a turning point for Nigeria’s exploration drive, noting that it demonstrates the renewed attractiveness of the upstream sector and provides a transparent framework for investment.

Under the contract, the initial work programme includes drilling one firm exploration well. The PSC also carries a $10 million signature bonus, with additional production bonuses triggered at 35 million and 100 million barrels. Provisions have been made for gas utilization, decommissioning, environmental remediation and host-community development.

Matthieu Bouyer, Country Chair of TotalEnergies Nigeria, stressed the company’s 60-year partnership with Nigeria, its 1,800-strong workforce, and its legacy projects such as Egina and Akpo in OML 130. He said the new licences align with the company’s strategy to pursue low-cost, lower-emission developments in line with energy transition goals. Sapetro’s Managing Director, Chukwuemeke Anagbogu, described the new PSCs as strategically vital for supplementing maturing assets and sustaining long-term production growth.

The signing comes at a time when Nigeria is sharpening its gas development focus under the PIA and new fiscal regimes. Analysts view the deal as a model for future PSCs, balancing investor incentives with stronger environmental and community safeguards. Nigeria currently holds an estimated 210 trillion cubic feet of gas reserves, making agreements like this central to both the country’s energy security and its positioning in the global energy transition.