- NUPRC signed a production sharing contract with TotalEnergies and Sapetro for the Niger Delta blocks PPL 2000 and 2001.
- With a $10m bonus and output incentives, the deal aims to boost reserves and attract investment.
The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on Monday, September 1, signed a production sharing contract (PSC) with TotalEnergies and South Atlantic Petroleum (Sapetro) for Petroleum Prospecting Licences (PPLs) 2000 and 2001 in the Niger Delta Basin.
The blocks, awarded in the 2024 licensing round, cover about 2,000 square kilometres. TotalEnergies will operate with an 80 per cent stake, while Sapetro will hold 20 per cent. The fiscal package includes a $10 million signature bonus and production bonuses tied to output milestones of 35 million and 100 million barrels.
NUPRC Chief Executive, Gbenga Komolafe, described the signing as “a new chapter” in Nigeria’s upstream oil and gas sector. He praised President Bola Tinubu for reforms that introduced fiscal incentives, local content enforcement, and contract timelines. Komolafe also stressed that the PSC provides clear terms on cost recovery, profit oil sharing, royalties, host community obligations, gas utilisation, decommissioning, and environmental remediation.
“Today is not just about signing documents. It is about laying the foundation for new exploration and investment,” Komolafe said. He added that the deal will unlock deepwater reserves, boost production, and strengthen energy security.
Nigerian National Petroleum Company (NNPC) Limited Group CEO Bayo Ojulari called the deal “unique,” noting it is the first deepwater PSC awarded since the Petroleum Industry Act (PIA) and the first to include both crude oil and natural gas terms. He also said the contract sets a cost recovery limit of 70 per cent and offers incentives for gas monetisation.
“This PSC enhances the Federation’s stake while ensuring good returns for contractors. It will move Nigeria closer to its target of three million barrels per day and attract new investment,” Ojulari said.
In addition, TotalEnergies Country Chair, Matthieu Bouyer, reaffirmed the company’s commitment to Nigeria, where it has operated for over 60 years. “We will progress swiftly and responsibly with the agreed work programme. Our focus remains on delivering low-cost, low-emissions developments that create value for all stakeholders,” Bouyer said.
The NUPRC emphasised that the deal aligns with its vision to make Nigeria Africa’s premier upstream investment destination.