The Nigerian National Petroleum Company (NNPC) Ltd, in partnership with the TotalEnergies–Sapetro Consortium, has signed a landmark Production Sharing Contract (PSC) for Petroleum Prospecting Licences (PPLs) 2000 and 2001. The agreement marks the first PSC in Nigeria to comprehensively cover both crude oil and natural gas exploration and production.
The signing ceremony, held Monday at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Headquarters in Abuja, was described as a major milestone in the Federal Government’s drive to unlock Nigeria’s hydrocarbon potential under the Petroleum Industry Act (PIA) 2021.
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, said the deal underscores the company’s commitment to energy security and economic growth, adding that the PSC’s robust gas terms will incentivize the monetisation of non-associated gas. He called the signing “a clear signal to the global investment community that Nigeria is open for business.”
Chief Executive of NUPRC, Engr. Gbenga Komolafe, highlighted the transparency and competitiveness of the award process, noting that the two offshore blocks span about 2,000 square kilometres. He commended the partners for their proven track record in projects such as Egina and Akpo.
TotalEnergies, holding 80% interest, and Sapetro, with 20%, pledged commitment to boosting reserves, local content development, and sustainable operations. TotalEnergies Nigeria CEO, Mr. Matthieu Bouyer, described the award as the first deepwater allocation to an international oil company in more than a decade, reaffirming the firm’s long-term presence in the country. Sapetro CEO, Mr. Chukwuemeke Anagbogu, said the partnership aligns with government priorities of responsible resource utilisation and inclusive growth.
The PSC outlines terms for work programme commitments, royalties, taxes, profit sharing, gas utilisation, decommissioning, environmental safeguards, and host community development, in line with PIA provisions.
