Nigeria has signed a new production-sharing contract with French energy giant TotalEnergies and local partner South Atlantic Petroleum Limited (Sapetro) for two offshore oil blocks, in a move aimed at boosting exploration and strengthening energy security.

The agreement, announced on Monday in Abuja, covers Petroleum Prospecting Licences 2000 and 2001 in the Niger Delta Basin.

Together, the blocks span around 2,000 square kilometres and were awarded in the country’s 2024 licensing round.

TotalEnergies will hold an 80 per cent contractor interest, while Sapetro takes the remaining 20 per cent, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

Gbenga Komolafe, NUPRC’s chief executive, said the deal marked “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.”

The contract, signed under Nigeria’s updated oil industry framework, includes obligations for signature bonuses and production bonuses, minimum work guarantees, profit sharing, and host community development. It also provides for environmental safeguards, including funds for decommissioning and remediation.

Nigeria, Africa’s largest oil producer, has been under pressure to revitalise its upstream oil sector amid falling global investment in fossil fuels and the transition towards cleaner energy sources.

TotalEnergies, already a major player in Nigeria’s energy industry, has been expanding its presence across Africa, recently securing new offshore exploration rights in the Congo Republic.

Officials in Abuja said the new contract is expected to provide a platform for future discoveries and help shore up Nigeria’s foreign exchange earnings at a time of growing fiscal pressures.