The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has successfully overseen the signing of Production Sharing Contracts (PSCs) for two offshore oil blocks.
According to GossipNewsNow, the Petroleum Prospecting Licences (PPLs) 2000 and 2001 were officially awarded to the TotalEnergies–Sapetro Consortium.
The signing ceremony, held in Abuja, marked the conclusion of a process that began during the December 2024 bid round, which the commission described as both competitive and transparent. Covering about 2,000 square kilometres in the Niger Delta Basin, the blocks were allocated by the Nigerian National Petroleum Company Limited (NNPC).
Dr. Chika Patrick, Executive Director of the Centre for Energy, Policy and Investment (CEPAI), described the agreements as a pivotal milestone in Nigeria’s upstream oil and gas reforms. He commended NUPRC for injecting transparency, competitiveness, and fiscal discipline into the sector.
“The successful conclusion of the Production Sharing Contracts for PPLs 2000 and 2001 underscores the profound reforms taking root in Nigeria’s oil industry under NUPRC,” Patrick said. “This is the fruit of deliberate policies that prioritise transparency, investor confidence, and national interest.”
He noted that the decision of international operators such as TotalEnergies and Sapetro to commit fresh capital to deepwater exploration reinforces the credibility of the new PSC framework and the broader policy direction under the Petroleum Industry Act (PIA).
Patrick added that investors respond to clarity and predictability, stressing that the willingness of long-standing operators to acquire new frontier assets demonstrates renewed trust in the regulatory and governance environment under NUPRC Chief Executive Gbenga Komolafe.
Beyond contract supervision, Patrick said NUPRC’s oversight of licensing terms, cost recovery structures, host community obligations, and environmental safeguards positions Nigeria as both a competitive and responsible player in the global energy space.
He explained:
- The framework strengthens reserves, energy security, job creation, and local content.
- It guarantees value for the federation through bonuses, royalties, and production sharing.
- It obligates investors to support host communities, ensure environmental compliance, and plan for decommissioning.
CEPAI also highlighted that the benefits of the new PSCs extend to indigenous service companies, technology transfer, and Nigeria’s decarbonisation goals.
“The inclusion of gas utilisation, cost efficiency, and environmental safeguards aligns Nigeria with global energy transition realities,” Patrick added. “It signals that Nigeria remains committed to sustainability while unlocking hydrocarbon opportunities.”
He concluded that the PSC signings should serve as an open invitation to other potential investors to take advantage of Nigeria’s revamped fiscal, regulatory, and governance framework.
© 2025 GossipNewsNow, a division of Chiejos Media Entreprise . Contact us via admin@gossipnewsnow.online
