The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday signed a Production Sharing Contract (PSC) for Petroleum Prospecting Licences (PPL) 2000 and 2001 with NNPC Limited and the TotalEnergies–Sapetro Consortium, a new chapter in Nigeria’s upstream oil and gas sector under the Petroleum Industry Act (PIA).
The agreement, concluded in Abuja, formally closes the 2024 Licensing Round and introduces a new PSC template aligned with the objectives of the PIA.
The licences, covering approximately 2,000 square kilometres in the Niger Delta Basin, were awarded to TotalEnergies (80% contractor interest) and South Atlantic Petroleum – Sapetro (20% contractor interest).
According to the terms, the PSC incorporates robust fiscal provisions with both oil and gas development clauses, making it the first deepwater PSC to comprehensively include non-associated gas terms.
The deal provides for a $10 million signature bonus and production bonuses tied to output milestones — two million barrels at early production, and four million barrels or cash equivalent at 35 million and 100 million barrels respectively.
Speaking at the ceremony, NUPRC Chief Executive, Gbenga Komolafe, described the signing as a milestone in Nigeria’s energy reforms.
“The PSC launches a committed work programme aimed at unlocking deepwater geological potential, expanding reserves, boosting production, and strengthening energy security,” he said.
Komolafe credited the progress to President Bola Tinubu’s reforms, including Executive Orders #40 (fiscal incentives), #41 (local content), and #42 (cost efficiency), which he said have catalysed fresh investments and positioned Nigeria for shared prosperity.
He urged contractors to accelerate technically sound exploration and pursue early Final Investment Decisions (FID) while maintaining commitments to local content, job creation, and decarbonisation principles.
Bashir Ojulari, Group CEO of NNPC Limited, said “This PSC incentivises monetisation of non-associated gas, a critical priority under the PIA. It strengthens our capacity to push Nigeria toward the 3 million barrels per day production target and mobilises an additional $60 billion in investments by 2030.”
TotalEnergies Managing Director, Mathieu Bouyer, reaffirmed the company’s long-term commitment to Nigeria, stating: “We are honoured to be the first International Oil Company awarded an exploration block in 10 years. Together with Sapetro, we will advance swiftly and responsibly on the agreed work programme.”
The signing of the PPL 2000 and 2001 PSC signals renewed momentum in Nigeria’s upstream deepwater portfolio. With the PIA providing clarity on fiscal, governance, and regulatory terms, analysts expect sustained inflows into the sector, particularly in gas development, which remains central to Nigeria’s long-term energy strategy.