NUPRC Signs Deepwater Oil PSC With NNPC, TotalEnergies, Sapetro in Nigeria

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has signed a Production Sharing Contract (PSC) with NNPC Limited and the TotalEnergies–Sapetro Consortium for Petroleum Prospecting Licences 2000 and 2001, marking a significant milestone in Nigeria's upstream oil and gas sector. The deal, covering over 2,000 square kilometers in the Niger Delta Basin, was awarded through a transparent, competitive bidding process under the 2024 Licensing Round, in line with the Petroleum Industry Act (PIA) 2021. NUPRC Chief Executive Gbenga Komolafe highlighted that this agreement initiates a committed work program aimed at unlocking deepwater geological potential, expanding reserves, boosting production, and enhancing Nigeria’s energy security. He praised President Bola Tinubu’s leadership and reforms, including Executive Orders 40, 41, and 42 on fiscal incentives, local content, and contract efficiency, which have catalyzed investment inflows and created an investor-friendly regulatory environment. The PSC includes provisions for signature and production bonuses, minimum work program obligations, transparent cost recovery, profit oil sharing, and strict adherence to royalty, tax, host community development, and decarbonization goals, providing certainty for investors and fairness for the federation. Both TotalEnergies, with over 60 years in Nigeria, and Sapetro, with 30 years, were commended for their longstanding presence and successful participation in this reform-driven licensing round.