The Nigerian National Petroleum Company Limited, in partnership with the TotalEnergies–Sapetro Consortium, has signed a landmark Production Sharing Contract for Petroleum Prospecting Licences 2000 and 2001, marking a major breakthrough in Nigeria’s upstream oil and gas sector.
The contract, signed on Monday at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission in Abuja, is the first of its kind to comprehensively cover both crude oil and natural gas exploration and production.
Group Chief Executive Officer of NNPC Ltd., Bayo Ojulari, described the deal as a game-changer with high-impact prospects for energy security and economic growth.
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“This particular PSC is unique in many respects. It is the first PSC that comprehensively covers both crude oil and natural gas. It is also the first with robust gas terms, including a profit gas fleet that incentivises monetisation of non-associated gas,” he said.
Ojulari added that the contract was not just an agreement but a testament to the success of the Petroleum Industry Act 2021 and a signal to investors that Nigeria is open for business.
Chief Executive of NUPRC, Gbenga Komolafe, noted that the award of the offshore blocks, which span about 2,000 square kilometres, was made possible by a transparent and reform-driven framework under the PIA.
He praised TotalEnergies and Sapetro for their track record in deepwater exploration, citing successes in the Egina and Akpo fields.
Managing Director of TotalEnergies E&P Nigeria, Matthieu Bouyer, said the signing reaffirmed the company’s commitment to Nigeria, where it has operated for more than six decades.
He noted that the blocks, awarded through an open and transparent process, make TotalEnergies the first international oil company to secure deepwater assets in over 10 years.
Similarly, Managing Director of Sapetro, Chukwuemeke Anagbogu, hailed the partnership as a step towards responsible resource utilisation, local content development, and inclusive growth.
He said the blocks would help boost reserves, sustain production, and create long-term value for stakeholders and the nation.
The PSC includes provisions for signature and production bonuses, a minimum work programme with performance guarantees, cost recovery and profit-sharing arrangements, royalties and taxes, gas utilisation commitments to reduce flaring, and obligations for decommissioning, environmental remediation, and host community development in line with the PIA.
