Nigerian National Petroleum Company Limited (NNPCL) has signed a production‑sharing contract with private oil and gas firms for petroleum prospecting licences PPL 2000 and PPL 2001. The agreement, announced on Monday, was signed at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja and marks a significant development in Nigeria’s upstream oil and gas sector.
Group Chief Executive Officer Bashir Bayo Ojulari said the partnership will enhance energy security and drive economic growth in Nigeria. He highlighted the contract’s uniqueness, noting that it comprehensively covers both crude oil and natural gas, includes robust gas terms, and features a profit‑gas fleet that incentivises the monetisation of non‑associated gas. The two offshore blocks, spanning roughly 2,000 sq km, were awarded through the transparent, competitive framework introduced by the Petroleum Industry Act 2021. NUPRC Chief Executive Commissioner Engr Gbenga Komolafe underscored the importance of this framework in facilitating the partnership.
TotalEnergies E&P Nigeria Limited and South Atlantic Petroleum Limited (Sapetro) are among the private firms involved. 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 more than 60 years. Sapetro Managing Director Chukwuemeke Anagbogu expressed his delight, saying the partnership will foster cooperation and drive growth in the sector.
The deal is a notable milestone in Nigeria’s effort to develop its upstream oil and gas industry and increase production. As the country navigates the complexities of the global energy landscape, collaborations like this are likely to be essential for progress and energy security. The successful implementation of the production‑sharing contract will be closely watched for its potential impact on Nigeria’s economic development and the broader energy sector.
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