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, in what is being described as a groundbreaking development for Nigeria’s oil and gas industry.
The agreement, signed on Monday at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, marks the first PSC in Nigeria to comprehensively cover both crude oil and natural gas exploration and production. Officials said the deal underscores the Federal Government’s determination to harness the country’s hydrocarbon resources responsibly and profitably.
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the contract as a “powerful testament” to the success of the Petroleum Industry Act (PIA) 2021, noting that it sends a clear message to global investors that Nigeria remains open for business.
“This particular PSC is unique in many respects,” Ojulari said. “It is the first to comprehensively cover both crude oil and natural gas, with robust gas terms that incentivise monetisation of non-associated gas. It represents high-impact prospects that will improve energy security and drive Nigeria’s economic growth.”
The Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the award of the two offshore blocks, spanning about 2,000 square kilometres, reflected the transparency and competitiveness of the PIA framework. He praised NNPC Ltd., TotalEnergies (80% interest) and Sapetro (20% interest) for their sustained commitment to upstream operations, citing their previous achievements in Egina and Akpo fields.
Also speaking, the Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer, said the agreement reaffirmed the company’s six-decade-long commitment to Nigeria. He noted that the blocks were awarded through an open and transparent process, making TotalEnergies the first international oil company to secure deepwater assets in more than 10 years.
Managing Director of South Atlantic Petroleum Limited (Sapetro), Mr. Chukwuemeke Anagbogu, hailed the contract as a milestone for local participation in the sector. He stressed that the blocks offered a clear path to boosting reserves, ensuring long-term production growth, and advancing local content and inclusive economic development.
The PSC outlines provisions for signature and production bonuses, cost recovery and profit-sharing, royalties, taxes, gas utilisation to curb flaring, environmental remediation, host community development, and decommissioning obligations—all in compliance with the PIA 2021.
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