France's energy giant TotalEnergies has secured two offshore exploration permits off the coast of Nigeria, marking the first time an international company has been awarded exploration licenses in a Nigerian bid round in more than a decade. The French company signed a production sharing contract for the PPL 2000 and PPL 2001 exploration licenses in Nigerian waters with its partner, South Atlantic Petroleum.

Partnership Structure and Ownership

TotalEnergies will serve as the operator with an 80% stake in the exploration licenses, while South Atlantic Petroleum holds the remaining 20% interest. This arrangement follows shortly after TotalEnergies, QatarEnergy, and Société Nationale des Pétroles du Congo (SNPC) obtained an exploration permit offshore Congo.

Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies, stated: “TotalEnergies is honored 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. 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.”

License Details and Geographic Coverage

The licenses were awarded following the 2024 exploration round organized by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC). The two permits cover an area of approximately 2,000 square kilometers in the prolific West Delta basin. TotalEnergies' work program for the permit duo includes drilling one firm exploration well.

Nigeria's Role in TotalEnergies' Production Portfolio

Nigeria is one of the major contributors to TotalEnergies' hydrocarbon production, with the French company producing 209,000 barrels of oil equivalent per day from the country in 2024. This production level underscores the strategic importance of Nigeria to TotalEnergies' overall operations.

African Operations and Recent Challenges

While TotalEnergies maintains many assets across Africa, the company's activities in South Africa recently encountered obstacles. The Western Cape High Court decided to axe the government's environmental authorization for offshore drilling in Blocks 5, 6, and 7, creating setbacks for the firm's planned South African operations.

The new Nigerian permits represent a continuation of TotalEnergies' expansion strategy in African waters, building on the company's existing presence in the region and its long-term partnership with Nigeria.

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