Partnership aims to boost reserves, strengthen local content development
The Nigerian National Petroleum Company (NNPC) Ltd has signed a landmark Production Sharing Contract (PSC) with the TotalEnergies–Sapetro Consortium for Petroleum Prospecting Licences (PPLs) 2000 and 2001. This milestone agreement marks the first PSC in Nigeria to comprehensively cover both crude oil and natural gas exploration and production.
The contract was officially signed on Monday at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, underscoring the Federal Government’s commitment to unlocking Nigeria’s hydrocarbon potential in a sustainable and profitable manner.
Group Chief Executive Officer of NNPC Ltd., Engr. Bashir Bayo Ojulari, described the agreement as a game-changer for Nigeria’s upstream sector.
“This PSC stands out for its comprehensive scope, encompassing both crude oil and natural gas,” he said. “It includes strong gas monetisation terms, such as a profit gas framework, to encourage investment in non-associated gas.”
He also highlighted that this development is not just about signing a contract, but a strong endorsement of the Petroleum Industry Act (PIA) 2021 and a clear signal to global investors that Nigeria is open for business.
Ojulari reaffirmed NNPC Ltd.’s dedication to using strategic partnerships and advanced technologies to elevate deepwater exploration and production beyond past achievements, ensuring economic viability and long-term sustainability.
Also speaking at the event, Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the allocation of the two offshore blocks—covering around 2,000 square kilometres—was made possible through the transparent and competitive processes introduced under the PIA 2021.
He commended NNPC Ltd., TotalEnergies (with an 80% stake), and Sapetro (holding 20%) for their consistent dedication to Nigeria’s energy sector, referencing the success of previous projects like Egina and Akpo.
Managing Director/CEO of TotalEnergies E\&P Nigeria, Mr. Matthieu Bouyer, hailed the agreement as a reaffirmation of the company’s longstanding commitment to Nigeria, where it has operated for over six decades. He noted that this was the first time in over 10 years that an international oil company (IOC) secured such deepwater assets through a transparent bidding process.
Sapetro’s Managing Director, Mr. Chukwuemeke Anagbogu, expressed pride in the collaboration, stating that the agreement aligns with the Federal Government’s goals of sustainable resource development, local content growth, and inclusive economic advancement.
He emphasized that the awarded blocks offer a clear pathway for increasing reserves and sustaining long-term production growth, contributing significantly to national development and stakeholder value.
The PSC includes provisions for signature and production bonuses, a defined minimum work programme with performance guarantees, rules for cost recovery and profit-sharing, royalties and taxes, and measures for gas utilisation to minimise flaring. It also mandates decommissioning plans, environmental restoration, and development initiatives for host communities, all in line with the PIA.
