The Nigerian National Petroleum Company Limited (NNPC Ltd) has sealed a major Production Sharing Contract (PSC) with TotalEnergies and Sapetro for two offshore blocks – www.naijnaira.com reports.
The agreement covers Petroleum Prospecting Licences 2000 and 2001, and according to Channels Television, it is the first of seven deepwater blocks from the 2024 licensing round to be executed under the Petroleum Industry Act.
The signing ceremony took place at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja.
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the PSC as “unique in many respects” because it comprehensively covers both crude oil and natural gas.
Ojulari explained that the new terms incentivise gas monetisation, with profit gas arrangements designed to boost returns on non-associated gas.
He stressed that the contract represents more than a signing, calling it proof of the success of the PIA 2021 and a signal that Nigeria is open to serious investors.
NUPRC Chief Executive, Engr. Gbenga Komolafe, revealed that the awarded blocks span nearly 2,000 square kilometres, the result of a transparent and competitive process introduced under the PIA reforms.
TotalEnergies, which holds 80 percent interest, and Sapetro, with 20 percent, were praised for their commitment to expanding production after earlier successes with projects like Egina and Akpo.
TotalEnergies’ Managing Director, Matthieu Bouyer, called the deal a reaffirmation of the company’s 60-year presence in Nigeria and said it was the first IOC to secure deepwater assets in more than a decade.
Sapetro’s Managing Director, Chukwuemeke Anagbogu, said the deal aligns with government priorities on responsible resource use, local content development, and broad-based economic growth.
He added that the project will help increase reserves, support long-term production growth, and sustain value creation for both stakeholders and the nation.
Article updated 6 days ago. Content is written and modified by multiple authors.
