By Oluwatobi Odeyinka, Staff Reporter, Lagos Headquarters
After a brief legal battle, during which a Nigerian independent objected to the process, TOTALEnergies has announced the signing of the Production Sharing Contract (PSC) for the PPL 2000 and PPL 2001 exploration licenses offshore Nigeria. The company won the blocks, along with its longstanding Nigerian partner, South Atlantic Petroleum, at the 2024 Exploration Round organized by the Nigerian Upstream Petroleum Regulatory Commission.The two partners hold an 80% (TOTAL), and a 20% (SAPETRO) split.
PPLs 2000 and 2001 were carved out of Oil Prospecting Lease (OPL) 248, once operated by the Nigerian independent, Zebra Energy.
NUPRC had revoked Zebra Energy’s licence to OPL 248, citing non-performance, and put it in the 2024 bid basket.
TOTAL had always had eyes on the acreage that became PPLs 2000 and 2001. Indeed the French major had indicated it would farm in into the asset and had spent as much as $1Million on reprocessing the three dimensional (3D) seismic data and was even prepared to drill a well, as a farminee.
Zebra’s legal challenge was quashed in court, clearing the way for the widely publicised PSC signing ceremony on September 1, 2025.
PPLs 2000 & 2001, situated in water depths between 1,500metres and 2,000metres, covering an area of approximately 2,000 square kilometres, are located in a highly prospective neighbourhood in the Niger Delta basin.
The two acreages are bounded on the east by the prolific Shell operated Oil Mining Lease (OML) 118, which holds the Bonga Main Field, Bonga North, Bonga North West and Bonga South West. To the north of PPLs 2000 and 2001 sits the ExxonMobil operated OML 133, which warehouses the Erha field, Erha South prospect and the Bosi gas field. The work programme in the PSC calls for drilling at least one exploration well.
“The Awardees of 2000 and 2001 Licensees clearly have become beneficiaries of the laudable initiatives and reforms of President Bola Ahmed Tinubu,” remarked Gbenga Komolafe, Chief Executive of the NUPRC, at the signing ceremony. His statement referenced Mr. Tinubu’s executive orders 40, 41, and 42 on fiscal incentives, local content, and contract timelines which, many argue, have created an improved environment for investment.
“The NUPRC…devoted significant time and expertise to develop a new standardised PSC template”.
Mr. Komolafe said that the NUPRC, working hand-in-hand with stakeholders, especially NNPC Limited as the concessionaire, “devoted significant time and expertise to develop a new standardised PSC template. The PSC sets out clear terms and conditions to guide this partnership. These include:
a. The payment of a signature bonus as stipulated in the licensing round and production bonuses tied to commercial milestones, ensuring value to the Federation;
b. A defined minimum work programme, with the requirement to provide guarantees to assure performance;
c. Clear rules on cost recovery and profit oil sharing between the Federation and Contractors, in line with the fiscal provisions of the PIA and applicable laws;
d. The payment of royalties and taxes, and strict compliance with the host community development obligations under the PIA.
“TOTALEnergies is honoured to be the first international company to be awarded exploration licenses in a bid round in Nigeria in more than a decade, marking a new milestone in our long-term partnership with the country,” said Kevin McLachlan, Senior Vice-President Exploration at TOTAlEnergies. “These promising block captures are fully aligned with our strategy of strengthening our Exploration portfolio with drill-ready and high impact prospects, that have the potential for low-cost and low-emissions developments from new discoveries in our core areas of expertise.”
