Abuja, 1 September 2025 —
The Nigerian National Petroleum Company (NNPC) Limited has signed a landmark Production Sharing Contract (PSC) with TotalEnergies and South Atlantic Petroleum Limited (Sapetro) for two deepwater petroleum prospecting licences, in a move expected to boost Nigeria’s oil and gas reserves and strengthen energy security.
The agreement, covering Petroleum Prospecting Licences (PPLs) 2000 and 2001, is the first of its kind to comprehensively include both crude oil and natural gas exploration and production. The signing took place on Monday at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja.
Speaking at the ceremony, NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the contract as a milestone for the industry, noting that it would enhance Nigeria’s capacity to monetise its hydrocarbon resources responsibly.
“This PSC is unique because it not only covers oil but also has robust terms for gas, including incentives to monetise non-associated gas. It is a strong signal to the global investment community that Nigeria is open for business,” Ojulari said.
He added that the development reflects the success of the Petroleum Industry Act (PIA) 2021 and underscores NNPC’s commitment to deploying advanced technology and operational standards in deepwater projects.
NUPRC Chief Executive, Engr. Gbenga Komolafe, said the award of the two offshore blocks — spanning about 2,000 square kilometres — stemmed from the PIA’s transparent and competitive framework. He praised TotalEnergies, with 80 percent interest, and Sapetro, with 20 percent, for their proven track records in projects such as Egina and Akpo.
Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer, described the signing as a reaffirmation of the company’s six-decade presence in Nigeria. He said the blocks, awarded through a competitive bid, mark the first international oil company acquisition of such deepwater assets in over 10 years.
Similarly, Sapetro’s Managing Director, Mr. Chukwuemeke Anagbogu, expressed optimism that the deal would increase reserves, expand production, and advance local content and community development.
The PSC includes provisions for signature and production bonuses, minimum work programmes, cost recovery and profit-sharing, royalties and taxes, gas utilisation to reduce flaring, and commitments to environmental remediation and host community development — all aligned with the PIA.
