Nigerian National Petroleum Company Limited (NNPCL) has entered into a production sharing contract with private oil and gas firms for petroleum prospecting licenses. The partnership, announced on Monday, concerns licenses PPL 2000 and 2001 and marks a significant development in Nigeria’s upstream oil and gas sector.
According to NNPCL, the agreement was signed at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja. The company’s Group Chief Executive Officer, Bashir Bayo Ojulari, noted that the partnership will enhance energy security and drive economic growth in Nigeria. He highlighted the uniqueness of the production sharing contract, which comprehensively covers both crude oil and natural gas, including robust gas terms and a profit gas fleet that incentivizes the monetization of non-associated gas.
The award of the two offshore blocks, spanning approximately 2,000 square kilometers, is a result of the transparent and competitive framework introduced under the Petroleum Industry Act (PIA) 2021. NUPRC’s Chief Executive Commissioner, Engr Gbenga Komolafe, emphasized the significance of this framework in facilitating the partnership. The blocks are expected to contribute to Nigeria’s oil and gas production, with potential benefits for the country’s economy.
TotalEnergies E&P Nigeria Limited and South Atlantic Petroleum Limited (Sapetro) are among the private firms involved in the partnership. TotalEnergies’ Managing Director/Chief Executive Officer, Mr Matthieu Bouyer, described the signing as a reaffirmation of the company’s commitment to Nigeria, where it has operated for over 60 years. Similarly, Sapetro’s Managing Director, Mr Chukwuemeke Anagbogu, expressed his delight in the partnership, which is expected to foster cooperation and drive growth in the sector.
The partnership is a notable milestone in Nigeria’s efforts to develop its upstream oil and gas sector. With the country seeking to increase its oil and gas production, the agreement is expected to play a crucial role in achieving this goal. As Nigeria continues to navigate the complexities of the global energy landscape, collaborations like this are likely to be essential in driving progress and ensuring energy security. The successful implementation of the production sharing contract will be closely watched, with potential implications for Nigeria’s economic development and the broader energy sector.
