Abuja: The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed a Production Sharing Contract (PSC) for Petroleum Prospecting Licences 2000 and 2001 with NNPC Limited and the TotalEnergies-Sapetro Consortium. Speaking at the signing ceremony, NUPRC Chief Executive, Mr. Gbenga Komolafe, highlighted the agreement as a milestone marking a new chapter in Nigeria’s upstream sector, aligning with the Petroleum Industry Act (PIA).
According to News Agency of Nigeria, the licences, awarded to TotalEnergies and its partner South Atlantic Petroleum (SAPETRO) under the 2024 Licensing Round, signal the formal conclusion of the round. Komolafe stated that the PSC launches a committed work programme aimed at unlocking deepwater geological potential, expanding reserves, boosting production, and enhancing Nigeria’s energy security. He also praised President Bola Tinubu for his reforms and directive that undeveloped assets be rebid and reallocated to competent bidders in line with the PIA.
The licences, awarded to TotalEnergies and SAPETRO, marked a new chapter in the oil and gas upstream sector. Komolafe encouraged TotalEnergies and other potential investors to leverage the regulatory, fiscal, and governance framework established by NUPRC, with the president’s support, in the next Licensing Round. He congratulated TotalEnergies, which holds an 80% contractor interest, and SAPETRO, with a 20% interest, on their success in the Licensing Round.
The Licensing Round was based on a fair, transparent, and competitive bidding process in accordance with Section 73 of the PIA. Komolafe described the award of these two offshore blocks, spanning about 2,000 square kilometers in the Niger Delta Basin, as a direct outcome of the transparent, competitive, and reform-driven framework introduced under the PIA. He commended NNPC Ltd. and contractors TotalEnergies and SAPETRO for their commitments in exploration and production activities in Nigeria.
Mr. Bashir Ojulari, Ground Chief Executive Officer of NNPC Ltd., expressed gratitude to the Federal Government, NUPRC, and TotalEnergies leadership for reopening the deepwater exploration space. Ojulari highlighted the unique aspects of the PSC, including robust gas terms and a profit gas split that incentivizes monetization of non-associated gas.
Ojulari noted that the PSC includes a signature bonus of 10 million dollars and a production bonus tied to production milestones. The agreement aims to bring NNPC Limited closer to achieving a target of three million barrels per day and an additional investment of 60 billion dollars by 2030.
TotalEnergies Managing Director, Mr. Mathieu Bouyer, thanked NUPRC for the extensive deliberations, rigorous evaluations, and transparent bid process, which concluded in December 2024. Bouyer expressed honor in being the first International Oil Company awarded an exploration block in a decade and eagerness to implement the agreed work programme for both blocks.