Nigeria has signed a production-sharing contract (PSC) with TotalEnergies and native agency South Atlantic Petroleum for 2 offshore blocks, in a step to spice up exploration and entice funding beneath its new oil framework.
Nigeria, Africa’s largest oil producer, is looking for to revitalise its upstream sector amid world vitality transition pressures and declining funding in fossil fuels.
The deal covers petroleum prospecting licences 2000 and 2001, awarded through the 2024 licensing spherical, and spans about 2,000 sq. km (772 sq. miles) within the Niger Delta Basin. TotalEnergies holds an 80% contractor curiosity, whereas Sapetro holds 20%, the upstream oil regulator stated on Monday.
“This PSC indicators the beginning of a dedicated work programme that can assist us unlock the untapped geological potential of our deepwater, increase our reserves, enhance manufacturing, and strengthen Nigeria’s vitality safety,” stated Gbenga Komolafe, Chief Govt of the Nigerian Upstream Petroleum Regulatory Fee.
The contract consists of provisions for signature and manufacturing bonuses, minimal work ensures, profit-sharing, and compliance with host neighborhood improvement obligations. It additionally outlines environmental safeguards, together with decommissioning and remediation funds.
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