A single signature bonus of $10 million can end years of legal wrangling. For TotalEnergies, the signboard should read, “A New Start!” not just a financial transaction.
In early January 2026, French energy giant TotalEnergies reached a final settlement with Nigerian firm Zebbra Energy. The dispute was over offshore block OPL 248, which had been redivided. The accord clears the path for two new blocks: PPL 2000 and PPL 2001 in the West Delta basin.
Being more than a corporate handshake, the deal marks a rapprochement after a fraught period. Zebbra, led by Ambrosie Orjiako, had sued to block the licence revocation. Thus, the denouement of this legal saga allows a major partnership to proceed.
By the same token, the new venture’s structure is significant. TotalEnergies remains the operator with a 40% stake. Chevron acquired an equal share. South Atlantic Petroleum holds the remaining 20%. This consortium represents deep investment in Nigeria’s deepwater future.
For the nation, the import is substantial. The agreement includes a $10 million bonus and future production bonuses. It is the first Production Sharing Contract with strong terms for natural gas, aiding Nigeria’s energy transition.
The background is checkered. Parallel to this deal, an arbitral tribunal ordered TotalEnergies to pay NNPC $285 million in a separate “overlift” dispute. The company must now navigate this contretemps while launching a new project.
Strict “drill or drop” rules from regulators add pressure. The partners must meet exploration milestones or forfeit the blocks. This is Nigeria’s new diktat to prevent dormant assets.
The true fulcrum of this story is not geology, but governance. What it shows is that Nigeria is increasingly tightening the grip on its resources, demanding performance and partnership over passive ownership.
For TotalEnergies, the agreement is a hard-won permit to proceed. For Nigeria, it is a test: can a settled contract finally deliver steady barrels and lasting benefit? The real drilling is just beginning.