The Nigerian National Petroleum Company Limited (NNPC Ltd) has taken a significant step in the country’s upstream oil and gas sector by executing a Production Sharing Contract (PSC) with the TotalEnergies-Sapetro Consortium for Petroleum Prospecting Licences (PPLs) 2000 and 2001. This development marks a major milestone in Nigeria’s efforts to harness its vast hydrocarbon resources responsibly and profitably.
The contract, which comprehensively covers both crude oil and natural gas exploration and production, is a first of its kind. According to Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd, this PSC has high-impact prospects that will improve energy security and drive Nigeria’s economic growth. Ojulari highlighted the unique features of the contract, including robust gas terms that incentivize the monetization of non-associated gas.
The signing ceremony, which took place at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Headquarters in Abuja, is a testament to the success of the Petroleum Industry Act (PIA) 2021. Ojulari emphasized NNPC Ltd’s commitment to leveraging partnerships and expertise to deepen upstream operations and surpass previous successes in deepwater projects.
NUPRC Chief Executive Gbenga Komolafe commended NNPC Ltd and the contractors for their commitment to exploration and production activities in the country. He cited the success of previous assets such as Egina and Akpo as evidence of the potential for growth and development in the sector. The award of the two offshore blocks, spanning about 2,000 square kilometers, is a direct product of a transparent and competitive framework introduced under the PIA 2021.
TotalEnergies’ Managing Director/Chief Executive Officer, Matthieu Bouyer, described the signing as a reaffirmation of the company’s deep commitment to Nigeria, where it has operated for over 60 years. The blocks were awarded through an open and transparent bid process, marking the first international oil company (IOC) to secure such deepwater assets in over 10 years.
The partnership has also been welcomed by Sapetro’s Managing Director, Chukwuemeke Anagbogu, who noted that the signing reaffirms the company’s alignment with the government’s vision for responsible resource utilization, local content advancement, and inclusive economic progress. This development is expected to have a positive impact on Nigeria’s economy and energy sector, and it will be interesting to see how the partnership unfolds.
