Nigeria signs PSC with TotalEnergies for two deepwater blocks

ABUJA, September 2, 2025 – Nigeria has signed a deepwater production-sharing contract (PSC) with TotalEnergies and South Atlantic Petroleum (SAPETRO) for offshore blocks PPL-2000 and PPL-2001 in the Niger Delta Basin, Reuters reported on Monday.

PPL-2000 and PPL-2001 cover 969 square kilometres and 960 square kilometres, respectively, in water depths between 1,250-2,000 metres, and were awarded in Nigeria’s 2024 licensing round. TotalEnergies holds an 80% contractor interest, and SAPETRO holds the remaining 20%.

“This PSC signals the start of a committed work programme that will help us unlock the untapped geological potential of our deepwater, expand our reserves, boost production and strengthen Nigeria’s energy security,” said Gbenga Komolafe, commission chief executive of the Nigerian Upstream Petroleum Regulatory Commission.

The PSC is part of Nigeria’s policy shift under the Petroleum Industry Act (PIA) aimed at expanding gas development. Komolafe said, “This new PSC with TotalEnergies represents a policy shift, in line with the PIA, which aims to unlock Nigeria’s gas potential and support the transition to a gas-powered economy.”

For more on Nigeria’s upstream strategy, read our interview with Gbenga Komolafe here.

Nigeria has been working towards making its offshore fields more attractive for international oil and gas operators. In May 2025, ExxonMobil announced plans to invest up to USD 1.5 billion to revitalise its deepwater production in the country, with a primary focus on the Usan field project, where the company is aiming for a positive FID by the end of 2025.

TotalEnergies’ PSC contains signature and production bonuses, minimum work guarantees, profit-sharing terms and community development obligations. Environmental protection provisions include the establishment of funds for decommissioning and remediation.

Nigeria is one of the countries that contributes the most to TotalEnergies’ global hydrocarbon production, with 209,000 boepd produced in 2024. TotalEnergies is present in the domestic upstream and midstream segments, and operates a distribution network of approximately 540 petrol stations.

SAPETRO is a Nigerian oil and gas E&P company with a focus on offshore operations in West Africa. It has previously partnered with TotalEnergies in Nigeria’s OML 130 deepwater development.

Photo of Egina FPSO in Nigeria’s PML 2/3/4 Block courtesy of TotalEnergies

Read our latest insights on: