The Nigerian National Petroleum Company Limited (NNPCL) has signed a production sharing contract (PSC) with Nigerian private oil and gas companies for petroleum prospecting licences (PPLs) 2000 and 2001.

The agreement, sealed at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) headquarters in Abuja, marks a major milestone in Nigeria’s upstream sector.

Group Chief Executive Officer of NNPCL, Bashir Bayo Ojulari, described the deal as groundbreaking, noting that it is the first PSC to comprehensively cover both crude oil and natural gas.

“This particular PSC is unique in many respects. It also includes robust gas terms, such as a profit gas fleet, that incentivises monetisation of non-associated gas,” Ojulari said.

NUPRC Chief Executive, Engr. Gbenga Komolafe, explained that the award of the offshore blocks covering about 2,000 square kilometers was enabled by the transparent, competitive, and reform-driven framework of the Petroleum Industry Act (PIA) 2021.

TotalEnergies E&P Nigeria Limited’s Managing Director/CEO, Matthieu Bouyer, said the agreement reaffirms the company’s “deep and enduring commitment” to Nigeria, where it has operated for over six decades.

Similarly, South Atlantic Petroleum Limited (Sapetro) Managing Director, Chukwuemeke Anagbogu, expressed delight in joining the partnership.