NNPC, TotalEnergies–Sapetro Consortium Seal Landmark Production Sharing Contract on Deepwater Blocks

The Nigerian National Petroleum Company Limited (NNPC Ltd), in partnership with the TotalEnergies–Sapetro Consortium, has concluded a landmark Production Sharing Contract (PSC) for Petroleum Prospecting Licences (PPLs) 2000 and 2001.

According to a statement in Abuja, the strategic collaboration is designed to enhance deepwater operations, stimulate investment, and support Nigeria’s long-term economic growth.

The event, held at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was described as a significant milestone in the Federal Government’s ongoing efforts to harness the nation’s hydrocarbon resources responsibly and profitably.

Speaking at the ceremony, NNPC Group CEO, Mr. Bayo Ojulari, stressed that the signing was not just a contract, but a strong demonstration of the success of the Petroleum Industry Act (PIA) 2021 and a signal to the global investment community that Nigeria is open for business.

On his part, the Chief Executive of NUPRC, Engr. Gbenga Komolafe, highlighted that the allocation of the two offshore blocks—covering about 2,000 square kilometres—was achieved through a transparent, competitive, and reform-driven framework introduced under the PIA 2021.

The Production Sharing Contract includes provisions for signature and production bonuses, cost recovery and profit-sharing arrangements, royalties and taxes, as well as gas utilisation measures to minimise flaring. It also outlines obligations for decommissioning, environmental remediation, and host community development, in full compliance with the PIA.