The Nigerian National Petroleum Company (NNPC) Limited, in partnership with the TotalEnergies–Sapetro Consortium, has signed a landmark Production Sharing Contract (PSC) covering Petroleum Prospecting Licences (PPLs) 2000 and 2001.
The agreement, concluded at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja, marks a significant milestone in the country’s oil and gas sector as the first PSC to comprehensively encompass both crude oil and natural gas exploration and production.
PRESS RELEASE
NNPC Ltd, TotalEnergies, Sapetro Execute Landmark PSC for Deepwater Blocks
…As Partners Commit to Boosting Reserves, Local ContentThe Nigerian National Petroleum Company (NNPC) Ltd, in partnership with the TotalEnergies–Sapetro Consortium, has executed a… pic.twitter.com/6KAKDxqgf4
— NNPC Limited (@nnpclimited) September 1, 2025
Speaking at the signing, NNPC Group Chief Executive Officer Engr. Bashir Bayo Ojulari described the contract as a transformative development for Nigeria’s energy security and long-term economic growth. He highlighted its innovative provisions on gas, including strong incentives for monetising non-associated gas, positioning Nigeria to unlock greater value from its hydrocarbon resources.
“This PSC is unique. It comprehensively addresses crude oil and natural gas, with innovative gas terms that support commercialisation. Beyond the signing, it is a strong testament to the success of the Petroleum Industry Act (PIA) 2021 and a clear signal that Nigeria is open for investment,” Ojulari said.
Chief Executive of NUPRC, Engr. Gbenga Komolafe noted that the award of the two offshore blocks, covering about 2,000 square kilometres, reflects the transparency and competitiveness introduced under the PIA reforms. He praised NNPC and its partners, TotalEnergies (80% interest) and Sapetro (20% interest), for their proven track record with deepwater assets such as Egina and Akpo.
Reaffirming its long-term commitment, the Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer, highlighted that the acquisition was the first by an international oil company in over a decade, adding that the blocks were secured through a transparent bidding process.
Similarly, the Managing Director of South Atlantic Petroleum Limited (Sapetro), Mr. Chukwuemeke Anagbogu, expressed confidence that the partnership aligns with Nigeria’s vision for responsible resource development, stronger local content, and inclusive economic growth. He emphasised that the blocks will boost reserves and ensure long-term production growth.
The PSC provides for signature and production bonuses, cost recovery and profit-sharing terms, royalties, taxes, and obligations covering decommissioning, environmental protection, host community development, and gas utilisation to curb flaring—all in line with the PIA framework.
With this historic signing, Nigeria is taking bold steps to unlock deepwater opportunities, strengthen investor confidence, and chart a sustainable path for its energy future.