The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has supervised the formal signing of Production Sharing Contracts (PSCs) for two offshore oil blocks.
Naija News reports that the Petroleum Prospecting Licences (PPLs) 2000 and 2001, was 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.
He said the commission had brought renewed vigour and credibility to Nigeria’s upstream oil and gas sector, particularly by strengthening transparency, competitiveness, and fiscal discipline.
“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. What we are witnessing is the fruit of deliberate reforms that prioritise transparency, investor confidence, and national interest,” The Guardian quoted him as saying.
According to him, the decision of international oil companies with long-standing operations in Nigeria such as TotalEnergies and Sapetro to commit fresh capital to deepwater exploration affirms the credibility of the new PSC framework and the broader policy direction set by the Petroleum Industry Act (PIA).
“Investors are not swayed by slogans; they respond to clarity, predictability, and fairness. 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 under Komolafe’s stewardship,” he explained.
He further noted that the commission’s role goes beyond supervising transactions, stressing that its oversight of licensing terms, cost recovery structures, host community obligations, and environmental safeguards positions Nigeria as a competitive and responsible player in the global energy landscape.
He said: “What this means for Nigeria is more than just oil. It translates to improved reserves, stronger energy security, new jobs, and deeper local content. The framework ensures value to the federation through signature bonuses, royalties, production milestones, and profit oil sharing, while also placing firm obligations on investors to develop host communities, comply with environmental remediation standards, and plan responsibly for decommissioning. These are the hallmarks of a regulator that is not only forward-looking but also uncompromising in protecting national interest.”
CEPAI added that the benefits of the new PSCs extend beyond the oil companies, as the contracts would create space for the growth of indigenous service firms, encourage technology transfer, and accelerate the country’s decarbonisation commitments.
“The fact that the framework enshrines obligations on gas utilisation, cost efficiency, and environmental responsibility shows a keen alignment with global energy transition realities. It is a clear signal that Nigeria is not turning its back on sustainability even as it unlocks new hydrocarbon potential,” he said.
According to CEPAI, the PSC closeout should serve as an invitation to other potential investors to seize the opportunities provided by Nigeria’s revamped regulatory, fiscal, and governance regime.
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