The Nigerian National Petroleum Company (NNPC) Limited has signed a landmark Production Sharing Contract (PSC) with the TotalEnergies–Sapetro Consortium, covering Petroleum Prospecting Licences (PPLs) 2000 and 2001.
The agreement, signed at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja, represents the first PSC to comprehensively cover both crude oil and natural gas exploration and production under the Petroleum Industry Act (PIA) 2021.
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
NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the contract as a game-changing development for Nigeria’s energy security and long-term economic growth. He noted that the deal includes innovative provisions for gas, particularly incentives for monetising non-associated gas, which would help unlock greater value from Nigeria’s hydrocarbon resources.
“This PSC is unique. It comprehensively addresses both 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.
NUPRC Chief Executive, Engr. Gbenga Komolafe, stated that the award of the two offshore blocks covering about 2,000 square kilometres demonstrates the transparency and competitiveness introduced under the PIA. He commended NNPC and its partners, TotalEnergies (80% interest) and Sapetro (20% interest), for their proven expertise in managing deepwater assets such as Egina and Akpo.
Reaffirming the consortium’s commitment, the Managing Director of TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer, pointed out that this acquisition was the first by an international oil company in Nigeria in more than a decade. He emphasised that the blocks were secured through a transparent bidding process.
Similarly, the Managing Director of South Atlantic Petroleum Limited (Sapetro), Mr. Chukwuemeke Anagbogu, said the partnership reflects Nigeria’s drive for responsible resource development, stronger local content, and inclusive economic growth. He added that the blocks would boost reserves and support long-term production growth.
The PSC sets out provisions for signature and production bonuses, cost recovery and profit-sharing, royalties, taxes, as well as obligations on decommissioning, environmental protection, host community development, and gas utilisation to reduce flaring all in line with the PIA framework.
With this historic deal, Nigeria is taking decisive steps to unlock new deepwater opportunities, bolster investor confidence, and secure a sustainable energy future.
