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 took place at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja.
The PSC is significant because it is the first of seven deep‑offshore PPL blocks awarded in the 2024 licensing round to be formally executed under the PIA. NNPC Ltd’s Group Chief Executive Officer, Engr. Bayo Ojulari, called the event a major milestone with high‑impact prospects that will improve energy security and drive Nigeria’s economic growth. He emphasized that the agreement comprehensively covers both crude oil and natural gas, featuring robust gas terms and a profit‑gas fleet that incentivizes the monetisation of non‑associated gas.
Engr. Gbenga Komolafe, Chief Executive Commissioner of the NUPRC, said the award of the two offshore blocks resulted from a transparent, competitive, and reform‑driven framework introduced under the PIA 2021. The blocks, covering about 2,000 square kilometres, were awarded to TotalEnergies (80 % interest) and Sapetro (20 % interest) through an open 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 agreement aligns with the government’s vision for responsible resource utilisation, local‑content advancement, and inclusive economic progress.
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, contributing to Nigeria’s energy security and economic development. This development represents a significant step forward in attracting investment and boosting the country’s oil and gas sector under the PIA.
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