Big Win For Nigeria’s Oil Sector: NUPRC Seals Deepwater PSC Deals On Offshore Blocks

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has overseen the official signing of Production Sharing Contracts (PSCs) for two offshore oil blocks.

The blocks, Petroleum Prospecting Licences (PPLs) 2000 and 2001, were awarded to the TotalEnergies–Sapetro Consortium following 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).

At the signing ceremony in Abuja, the Executive Director of the Centre for Energy, Policy and Investment (CEPAI), Dr. Chika Patrick, described the agreements as a major milestone in consolidating Nigeria’s upstream oil and gas reforms. He praised NUPRC for injecting transparency, competitiveness, and fiscal discipline into the sector.

“The conclusion of PSCs for PPLs 2000 and 2001 highlights the positive transformation within Nigeria’s oil industry under NUPRC. These reforms are deliberately designed to foster transparency, investor confidence, and national interest,” Dr. Patrick said, as quoted by The Guardian.

He noted that the participation of long-standing international oil players like TotalEnergies and Sapetro reflects strong investor confidence in Nigeria’s new PSC framework and the policy direction set by the Petroleum Industry Act (PIA).

“Investors respond to clarity, predictability, and fairness. Seeing established companies take on new frontier assets shows the trust they now place in Nigeria’s regulatory and governance framework under Komolafe’s leadership,” he added.

Dr. Patrick stressed that NUPRC’s role goes beyond transactions, pointing to its oversight of licensing terms, cost recovery, host community development, and environmental safeguards as proof of Nigeria’s growing competitiveness in the global energy landscape.

According to him, the contracts will not only boost reserves and energy security but also create jobs, expand local content, and generate value for the federation through signature bonuses, royalties, production milestones, and profit oil sharing. He emphasized that companies are also obligated to support host communities, comply with environmental standards, and plan for decommissioning.

CEPAI further highlighted that the PSCs would benefit indigenous service providers, foster technology transfer, and align with Nigeria’s energy transition goals through gas utilisation and sustainability measures.

“This framework shows Nigeria is committed to balancing oil development with global energy transition realities. It signals to investors that Nigeria is open, competitive, and forward-looking,” Dr. Patrick said.

He concluded that the successful closeout of the PSCs should serve as a call for more investors to take advantage of Nigeria’s reformed regulatory and fiscal environment.