The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on Tuesday supervised the formal signing of Production Sharing Contracts (PSCs) for two offshore oil blocks, Petroleum Prospecting Licences (PPLs) 2000 and 2001, awarded to the TotalEnergies-Sapetro Consortium.
The ceremony, held in Abuja, concluded a process that began with the December 2024 bid round, which the commission described as competitive and transparent. The blocks, covering about 2,000 square kilometres in the Niger Delta Basin, were allocated by the Nigerian National Petroleum Company Limited (NNPC).
Speaking at the event, the Executive Director of the Centre for Energy, Policy and Investment (CEPAI), Dr Chika Patrick, said the agreements represented a critical step in consolidating Nigeria's upstream oil and gas reforms.
"The successful conclusion of the Production Sharing Contracts for PPLs 2000 and 2001 underscores the profound changes that have taken root in Nigeria's oil industry under the NUPRC," he said. "What we are witnessing is the fruit of deliberate reforms that prioritise transparency, investor confidence, and national interest."
He explained that the participation of established international oil companies such as TotalEnergies and Sapetro indicated a willingness by investors to commit new capital to Nigeria's deepwater exploration under the revised PSC framework and the Petroleum Industry Act (PIA).
"Investors are not swayed by slogans; they respond to clarity, predictability, and fairness," Dr Patrick noted. "The presence of companies with decades of operations in Nigeria stepping forward to take on new frontier assets reflects the trust they now place in the regulatory and governance environment crafted by NUPRC."
According to him, the contracts also carry provisions that ensure value creation for Nigeria through signature bonuses, royalties, and profit oil sharing, alongside obligations on host community development and environmental compliance.
"This framework translates to improved reserves, stronger energy security, new jobs, and deeper local content," he added.
Dr Patrick stressed that the agreements were not limited to oil production but also addressed gas utilisation, environmental safeguards, and decommissioning responsibilities, aligning Nigeria's upstream policies with global energy transition goals.
"The fact that the framework enshrines obligations on gas utilisation, cost efficiency, and environmental responsibility shows a keen alignment with global energy transition realities," he said.
The CEPAI director further noted that the outcome of the bid round and PSC closeout should encourage more international and local investors to take advantage of opportunities in Nigeria's upstream sector.
"What has happened with PPLs 2000 and 2001 is proof that Nigeria is open for business in a way that respects both investors and citizens," he said.
Industry stakeholders present at the signing said the agreements would unlock new deepwater resources, support indigenous service providers, and expand Nigeria's production capacity, contributing to national revenue and long-term energy security.