Nigeria has signed a fresh Production Sharing Contract (PSC) with TotalEnergies and its partner South Atlantic Petroleum (Sapetro) for two offshore blocks in the Niger Delta Basin, covering about 2,000 square kilometers.
Under the agreement, TotalEnergies holds an 80% stake, while Sapetro controls the remaining 20%. The contract includes key provisions such as production bonuses, minimum work commitments, profit-sharing arrangements, community development obligations, and funding for environmental safeguards like decommissioning and site remediation.
This marks the first PSC to be finalized under Nigeria’s Petroleum Industry Act (PIA) of 2021, and it is designed to encourage gas-focused development through tax credits and investment allowances. Officials say the agreement could serve as a model for future deepwater and frontier contracts, positioning natural gas at the center of Nigeria’s energy transition.
With an estimated 210.5 trillion cubic feet of proven gas reserves, Nigeria is aiming to shift from crude dependence to a gas-driven economy. The deal with TotalEnergies highlights the government’s strategy to reduce gas flaring, expand infrastructure, and attract global investment into the sector.
