NNPC Ltd, TotalEnergies, Sapetro Sign Landmark Deal to Boost Reserves and Local Content
By NaijaEnquirer Staff
The Nigerian National Petroleum Company (NNPC) Ltd, alongside the TotalEnergies–Sapetro Consortium, has signed a landmark Production Sharing Contract (PSC) for Petroleum Prospecting Licences (PPLs) 2000 and 2001. This marks Nigeria’s first PSC to comprehensively cover both crude oil and natural gas exploration and production.The agreement, signed at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Headquarters in Abuja, represents a major milestone in Nigeria’s strategy to responsibly harness its hydrocarbon resources.
Group Chief Executive Officer (GCEO) of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the deal as unique, highlighting that it includes robust gas terms, profit gas incentives, and underscores the success of the Petroleum Industry Act (PIA) 2021. He noted the partnership would strengthen energy security and economic growth.
Chief Executive of NUPRC, Engr. Gbenga Komolafe, emphasized that the award of the two offshore blocks—spanning about 2,000 square kilometres—reflects the transparent and competitive framework enabled by the PIA.
TotalEnergies E&P Nigeria Ltd Managing Director, Mr. Matthieu Bouyer, reaffirmed the company’s long-term commitment to Nigeria, while Sapetro CEO, Mr. Chukwuemeke Anagbogu, expressed optimism that the project will increase reserves, promote local content, and ensure sustainable value creation.
The PSC includes signature and production bonuses, minimum work programme obligations, cost recovery and profit-sharing rules, royalties and taxes, gas monetisation measures, as well as commitments to decommissioning, environmental remediation, and host community development.
