Nigeria Signs Major Deepwater Oil Deal with TotalEnergies, Hails New Investment Era

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has executed a landmark Production Sharing Contract (PSC) with a consortium comprising TotalEnergies and South Atlantic Petroleum (Sapetro) for two deepwater oil blocks.

The agreement for Petroleum Prospecting Licences 2000 and 2001, awarded in the 2024 licensing round, was signed on Monday in Abuja.

TotalEnergies will serve as the operator with an 80% stake, while Sapetro holds the remaining 20%.

The fiscal terms include a $10 million signature bonus and performance-based production bonuses equivalent to 2 million and 4 million barrels of oil upon reaching output milestones of 35 million and 100 million barrels, respectively.

NUPRC Chief Executive Gbenga Komolafe hailed the deal as the start of a “new chapter” for Nigeria’s oil industry. He credited President Bola Tinubu’s recent executive orders on fiscal incentives for catalyzing this investment, making Nigeria a more competitive destination for international capital.

Komolafe emphasized that the PSC provides clear terms on cost recovery, profit sharing, and gas development in full compliance with the Petroleum Industry Act (PIA).

The Group CEO of NNPC Limited, Bayo Ojulari, highlighted the contract’s unique status as the first deepwater PSC signed under the PIA and the first to include comprehensive terms for both crude oil and natural gas.

He noted the contract’s robust incentives and a 70% cost recovery limit are designed to boost production while ensuring value for the Nigerian state.

Matthieu Bouyer, TotalEnergies’ Country Chair in Nigeria, reaffirmed the company’s six-decade commitment to the country.

He stated the company plans to leverage its expertise to develop the blocks responsibly with low-cost and low-emission strategies, contributing to Nigeria’s goal of producing 3 million barrels of oil per day.

The signing is a significant outcome of the 2024 licensing round and is expected to unlock new exploration, expand Nigeria’s oil reserves, and strengthen its energy security.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

See author's posts