The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed a Production Sharing Contract (PSC) with NNPC Limited and the TotalEnergies‑Sapetro Consortium for Petroleum Prospecting Licences 2000 and 2001. NUPRC Chief Executive Gbenga Komolafe said the agreement marks a significant milestone in Nigeria’s upstream sector and aligns with the Petroleum Industry Act (PIA). The licences, awarded to TotalEnergies and its partner South Atlantic Petroleum (Sapetro) in the 2024 Licensing Round, signify the formal conclusion of that round.
The PSC aims to unlock deep‑water geological potential, expand reserves, boost production and enhance Nigeria’s energy security. Komolafe praised President Bola Tinubu for his bold reforms, which have attracted substantial investment and set the stage for shared prosperity. The 2024 Executive Orders—particularly those on fiscal incentives, local content and cost efficiency—have positively impacted the sector, and the awardees of licences 2000 and 2001 are beneficiaries of these initiatives.
Komolafe urged TotalEnergies and other potential investors to take advantage of Nigeria’s favourable regulatory, fiscal and governance regime. The Licensing Round was conducted through a fair, transparent and competitive bidding process, as outlined in Section 73 of the PIA. The award of the two offshore blocks, covering roughly 2,000 square kilometres in the Niger Delta Basin, directly reflects this framework.
In collaboration with stakeholders, including NNPC Limited, the NUPRC developed a new standardised PSC template that embodies the spirit and intent of the PIA. The PSC is unique in covering both crude oil and natural gas, featuring robust gas terms and a profit‑gas split that incentivises monetisation of non‑associated gas. The agreement includes a signature bonus of $10 million, production bonuses and cash equivalents for meeting specific production milestones. This development is expected to bring NNPC Limited closer to its target of three million barrels per day and to attract an additional $60 billion of investment by 2030.
TotalEnergies Managing Director Mathieu Bouyer thanked the NUPRC for ensuring a transparent bid process and extensive deliberations. TotalEnergies is eager to progress swiftly and responsibly with the implementation of the agreed work programme for both blocks. The signing of the PSC marks a new chapter in Nigeria’s oil and gas upstream sector, with the potential to unlock significant investment and growth opportunities.
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