Nigeria Signs Landmark Offshore Oil Contract with TotalEnergies

Nigeria Signs Landmark Offshore Oil Contract with TotalEnergies

Abuja, Nigeria – September 2, 2025 – 

The Federal Government of Nigeria has signed a major production-sharing contract with TotalEnergies and South Atlantic Petroleum (Sapetro) for the exploration and development of two deepwater offshore blocks in the Niger Delta Basin.

The agreement covers Petroleum Prospecting Licenses (PPLs) 2000 and 2001, spanning approximately 2,000 square kilometers. Under the deal, TotalEnergies will hold an 80% operating stake, while Sapetro will retain the remaining 20% interest.

Boost to Nigeria’s Oil and Gas Industry

According to government officials, the contract is designed to attract foreign investment, strengthen Nigeria’s energy security, and expand its reserves base. It also introduces production bonuses, profit-sharing mechanisms, and environmental obligations that align with global sustainability standards.

“The signing of this agreement is a milestone for Nigeria’s energy sector. It underscores our commitment to fostering partnerships that will unlock the vast potential of our offshore resources while ensuring community development and environmental protection,” said a statement from the Nigerian National Petroleum Company Limited (NNPC Ltd).

Strategic Importance

Industry analysts say the contract represents one of the most significant deepwater investments in recent years, especially at a time when Nigeria is seeking to revive crude output amid global energy transition debates.

By leveraging cutting-edge deepwater technology, the project is expected to create jobs, boost government revenues, and stimulate local industries linked to oil and gas services.

International Collaboration

Representatives from TotalEnergies emphasized their long-standing presence in Nigeria and commitment to advancing projects that balance economic growth with environmental responsibility.

“This agreement demonstrates our confidence in Nigeria’s potential as a key energy player in Africa. We are committed to delivering value for both the Nigerian people and our stakeholders,” a spokesperson for TotalEnergies said.