The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has been praised for its role in overseeing the successful execution of a Production Sharing Contract (PSC) for two offshore oil blocks awarded to the TotalEnergies–Sapetro Consortium. Stakeholders have described the development as a significant step forward in Nigeria’s ongoing oil sector reforms.
The formal signing ceremony for the PSC covering Petroleum Prospecting Licences (PPLs) 2000 and 2001 was held in Abuja on Tuesday. It concluded a process that began in December 2024 with a transparent and competitive bid round supervised by NUPRC.
The Nigerian National Petroleum Company Limited (NNPC) awarded the deepwater blocks, spanning about 2,000 square kilometres in the Niger Delta Basin, to TotalEnergies and Sapetro following the successful round.
Dr Chika Patrick, Executive Director of the Centre for Energy, Policy and Investment (CEPAI), commended the commission under the leadership of Gbenga Komolafe for restoring credibility to Nigeria’s upstream oil and gas sector. He cited its focus on transparency, competitiveness, and fiscal discipline as key to attracting new investment.
“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,” Dr Patrick stated.
He explained that the decision by long-established international players like TotalEnergies and Sapetro to inject fresh capital into deepwater exploration reflects confidence in the new PSC framework and 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 added.
Dr Patrick stressed that the commission’s involvement extends far beyond supervising contracts, noting its oversight of licensing terms, cost recovery models, environmental safeguards, and host community obligations. These measures, he said, enhance Nigeria’s reputation as a competitive and responsible energy player.
“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 forward-looking and uncompromising in safeguarding national interest,” he remarked.
He also recalled Komolafe’s growing international recognition for his reformist leadership, referencing awards such as the Servicom Distinguished Trailblazer Award, the Nigerian Association of Petroleum Explorationists (NAPE) Energy Policy Reform Award, and honours from the 2025 Africa Energies Summit in London.
“These awards are not ceremonial; they are testimonies of impact. They validate the transformational journey Nigeria’s upstream sector has embarked upon. Under Komolafe, NUPRC has become not just an industry regulator but a symbol of how bold reforms and strong institutions can rewrite the story of an entire sector,” he stated.
Dr Patrick emphasised that the new PSC framework supports domestic participation, technology transfer, and Nigeria’s decarbonisation objectives.
“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.
CEPAI encouraged other investors to take advantage of the regulatory, fiscal, and governance improvements that Nigeria has introduced.
“What has happened with PPLs 2000 and 2001 is proof that Nigeria is open for business in a way that respects both investors and citizens. It is a call to other international players and local investors alike to recognise that the framework is ready, the opportunities are vast, and the regulator is competent and fair,” Dr Patrick said.
The group expressed confidence that exploration and development under the new contracts will unlock additional deepwater potential, expand production, and increase government revenues, reinforcing Nigeria’s ambition to remain Africa’s top destination for upstream energy investment.