New Contracts, New Expectations
This PSC solidifies the award of Petroleum Prospecting Licences (PPLs) 2000 and 2001 to TotalEnergies and South Atlantic Petroleum (Sapetro), which were secured during the 2024 Licensing Round. These two offshore blocks, covering approximately 2,000 square kilometers in the rich Niger Delta Basin, were granted through a transparent and competitive bidding process in line with Nigeria's Petroleum Industry Act (PIA).
Komolafe's message was clear: there's no time to waste. He emphasized the need for "swift and technically sound exploration" to not only increase oil output but also deepen local content, create jobs, and empower Nigerian businesses. He also praised President Bola Ahmed Tinubu for his commitment to implementing the PIA, warning that undeveloped assets could face revocation and be re-awarded to more competent bidders.
A Collaborative Effort
The partnership brings together significant industry experience. TotalEnergies, with its 60 years of operation in Nigeria, holds an 80% contractor interest, while Sapetro, with 30 years of experience, holds the remaining 20%.
The new PSC is seen as a major step toward achieving the national oil production target. Engr. Bashir Bayo Ojulari, Chief Executive Officer of NNPC Limited, echoed this sentiment, stating that the agreement is a key milestone that will move NNPC closer to its goal of 3 million barrels per day and an additional investment of $60 million by 2030. The contract includes robust fiscal terms, such as a $10 million signature bonus and a production bonus of up to $4 million upon reaching specific output milestones.
Komolafe also urged the consortium to be ambitious, targeting an exploration depth of 3,000 meters in the basin. This new PSC is a critical component of NNPC’s strategy to fulfill the nation's energy aspirations and ensure sustained development in the upstream sector.