The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Monday formally closed the Production Sharing Contract (PSC) for two offshore oil blocks awarded by the Nigerian National Petroleum Company Limited (NNPC) to the TotalEnergies–Sapetro Consortium.
The assets, Petroleum Prospecting Licences (PPLs) 2000 and 2001, covering about 2,000 square kilometres in the Niger Delta Basin, were secured after an open and competitive bid process concluded in December 2024.
Speaking in Abuja, NUPRC Chief Executive Gbenga Komolafe said the agreement was enabled by President Bola Tinubu’s Executive Orders 40, 41, and 42, which introduced fiscal incentives, local content measures, and contract efficiency timelines. He stressed that all awards under the Petroleum Industry Act (PIA) have strict timelines, with unexplored acreages to be relinquished if left idle.
Komolafe disclosed that TotalEnergies, with over 60 years in Nigeria, holds 80% contractor interest in the blocks, while Sapetro, with three decades of operations, holds 20%. He said the PSC reflects Nigeria’s reform-driven approach to unlocking deepwater resources.
“This PSC signals the start of a committed work programme that will help unlock the untapped potential of our deepwater, expand reserves, boost production, and strengthen Nigeria’s energy security,” Komolafe said. He added that the new framework provides clear terms on signature bonuses, production milestones, royalties, cost recovery, and host community obligations in line with the PIA.
NNPC Group Chief Executive Officer, Bayo Ojulari, described the agreement as a milestone, noting it is the first PSC to comprehensively cover both crude oil and natural gas. He highlighted incentives including a $10 million signature bonus and production-linked payments, adding that the deal will help NNPC meet its target of three million barrels per day and attract $60 billion in investments by 2030.
TotalEnergies’ Managing Director, Mathieu Bouyer, said the consortium was honoured to be awarded Nigeria’s first exploration block in a decade. He assured that the partners would move quickly to drill their first well.
Sapetro’s Managing Director, Chukwuemeke Anagbogu, described the blocks as strategically important for Nigeria and the company. “These assets represent a transformative step forward that will sustain value creation for our shareholders and the nation. As one of Nigeria’s pioneer deepwater companies, we are committed to advancing local content and inclusive growth,” he said.
