The Nigerian National Petroleum Company (NNPC) Ltd. and the TotalEnergies–Sapetro Consortium have signed a landmark Production Sharing Contract (PSC) for Petroleum Prospecting Licences (PPLs) 2000 and 2001, the first to be executed under the Petroleum Industry Act (PIA) covering both crude oil and natural gas.
The signing ceremony took place Monday at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja.
This PSC marks the first of seven deep offshore blocks awarded in the 2024 licensing round to be formally executed under the PIA framework.
Speaking at the event, NNPC Ltd. Group Chief Executive Officer, Engr. Bayo Ojulari, described the agreement as a milestone for Nigeria’s energy sector.
“This PSC is unique in many ways. It’s the first to comprehensively cover both crude oil and natural gas, with robust gas terms that incentivise monetisation of non-associated gas,” Ojulari said.
He noted that the deal represents more than just a contract, it’s a strong endorsement of the PIA 2021 and a clear signal to global investors that Nigeria is open for business.
Ojulari reiterated NNPC’s commitment to leveraging strategic partnerships and deepwater expertise to enhance upstream operations, using advanced technologies and global best practices to ensure commercial success and sustainability.
Also speaking at the event, NUPRC Chief Executive, Engr. Gbenga Komolafe, said the award of the two deep offshore blocks — spanning approximately 2,000 square kilometres — reflects the success of the PIA’s transparent and competitive licensing framework.
He commended the consortium partners — TotalEnergies (holding 80% interest) and Sapetro (20%) — for their longstanding contributions to Nigeria’s energy sector, including their work on major projects like Egina and Akpo.
TotalEnergies E&P Nigeria Managing Director/CEO Matthieu Bouyer described the PSC as a reaffirmation of the company’s over 60-year commitment to Nigeria.
“This marks the first time in more than a decade that an international oil company has secured new deepwater assets in Nigeria through a transparent bidding process,” Bouyer said.
Sapetro Managing Director, Chukwuemeke Anagbogu, echoed the sentiment, highlighting the company’s alignment with the government’s goals for responsible resource management, local content development, and broad-based economic growth.
He added that PPLs 2000 and 2001 offer a clear pathway to reserve growth and long-term production, contributing sustained value for stakeholders and the nation.
