By Obiabin Onukwugha
TotalEnergies has made deeper inroads into African with the signing of new contract for deepwater exploration in Nigeria and Congo, respectively.
The development is coming less than two weeks after host communities and civil society organisations across Africa carried out a one-week campaign against the company, tagged: “Kick Total Out of Africa.”
The contract with the Nigerian government is a $10million production-sharing contract (PSC) with TotalEnergies (TTEF.PA), and local firm, South Atlantic Petroleum for two offshore blocks, in a step to boost exploration and attract investment under its new oil framework.
Nigeria, Africa’s largest oil producer, is seeking to revitalize its upstream sector amid global energy transition pressures and declining investment in fossil fuels.
The deal, it was gathered, covers petroleum prospecting licences 2000 and 2001, awarded during the 2024 licensing round, and spans about 2,000 square km (772 square miles) in the Niger Delta Basin.
Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, (NURPC, Gbenga Komolafe, who announced the deal on Monday, stated that TotalEnergies holds an 80 percent contractor interest, while Sapetro holds 20 percent.
“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,” Komolafe said.
He revealed that the contract includes provisions for signature and production bonuses, minimum work guarantees, profit-sharing, and compliance with host community development obligations. It also outlines environmental safeguards, including decommissioning and remediation funds.
“Today is not just about signing documents. It is about laying the foundation for new exploration and investment. 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. It also affirms our broader vision to make Nigeria the premier destination for upstream investment in Africa.
“Importantly, the PSC sets out clear terms and conditions to guide this partnership. These include the payment of a signature bonus as stipulated in the licensing round and production bonuses tied to commercial milestones, ensuring value to the Federation; A defined minimum work programme, with the requirement to provide guarantees to assure performance.
“Of course, this journey was not without challenges. Attracting investors to the 2024 Licensing Round was not easy. But with the approval of Mr. President, the Commission adopted a pragmatic solution introducing minimum signature bonuses as consideration for asset awards.
“This approach aligned Nigeria with international best practice, where countries like Thailand, Israel, Guyana, and Brazil have moved away from heavy, front-loaded bonuses towards minimal or no signature bonuses to attract investment,” the NURPC Chief executive stated.
In another development, the Congolese government has awarded Total permit to explore a block off its coast.
In announcement by Total on Monday, the company revealed that it’s Congo affiliate will operate the block with a 50 percent stake while QatarEnergy will keep 30 percent, while the remaining 25 percent will belong to Congo’s state oil company, SNPC.
The permit, it was gathered, is for the Nzombo area located 100km off Pointe-Noire on the Atlantic Ocean.
According to Total, the drilling of the first exploration well is expected to happen before the end of 2025.
Total currently produces 65,000 barrels of oil per day in the Republic of Congo. From January to July 2025, the country produced 56.9 million barrels (268 thousand b/d), which is 5.2 percent more than a year earlier. The target is to produce 500,000 bpd by 2027.
