The Nigerian National Petroleum Company (NNPC) Ltd has signed a Production Sharing Contract (PSC) with the TotalEnergies–Sapetro Consortium for Petroleum Prospecting Licences (PPLs) 2000 and 2001. This marks the first PSC under the Petroleum Industry Act (PIA) to cover both crude oil and natural gas exploration and production. The ceremony was held at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Headquarters in Abuja.
The PSC is significant as it is the first of seven deep offshore PPL blocks awarded in the 2024 licensing round to be officially executed under the PIA. NNPC Ltd’s Group Chief Executive Officer, Engr. Bayo Ojulari, noted that this event represents a major milestone with high-impact prospects that will improve energy security and drive Nigeria’s economic growth. He highlighted that the PSC comprehensively covers both crude oil and natural gas, with robust gas terms including a profit gas fleet that incentivizes monetization of non-associated gas.
The NUPRC’s Chief Executive Commissioner, Engr. Gbenga Komolafe, stated that the award of the two offshore blocks was a result of a transparent, competitive, and reform-driven framework introduced under the PIA 2021. The blocks, spanning about 2,000 square kilometers, were awarded to TotalEnergies (with 80% interest) and Sapetro (with 20% interest) through an open and transparent bid process.
TotalEnergies’ Managing Director/Chief Executive Officer, Matthieu Bouyer, described the signing as a reaffirmation of the company’s commitment to Nigeria, where it has operated for over 60 years. Chukwuemeke Anagbogu, Managing Director of South Atlantic Petroleum Limited (Sapetro), noted that the signing aligns with the government’s vision for responsible resource utilization, local content advancement, and inclusive economic progress.
The signing of the PSC is expected to play a vital role in sustaining value creation for shareholders, stakeholders, and the nation. The blocks provide a clear path to increasing reserves and assuring long-term production growth, which will contribute to Nigeria’s energy security and economic growth. With this development, Nigeria has taken a significant step forward in its efforts to attract investment and boost its oil and gas sector under the PIA.
