The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has received commendation for its role in supervising the execution of a Production Sharing Contract (PSC) for two offshore oil blocks awarded to the TotalEnergies–Sapetro Consortium, with stakeholders describing the move as another milestone in Nigeria’s oil sector reform journey.
The PSC closing ceremony for the assets, Petroleum Prospecting Licences (PPLs) 2000 and 2001, held in Abuja on Tuesday, marked the conclusion of a process that began in December 2024 with a transparent and competitive bid round supervised by the NUPRC.
The award of the blocks, which span about 2,000 square kilometres in the prolific Niger Delta Basin, was made by the Nigerian National Petroleum Company Limited (NNPC) to the consortium of TotalEnergies and Sapetro.
Applauding the development, the Centre for Energy, Policy and Investment (CEPAI), through its Executive Director, Dr Chika Patrick, said the commission under the leadership of Gbenga Komolafe 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,” Dr Patrick said.
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,” Dr Patrick 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.
“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 deco
These are the hallmarks of a regulator that is not only forward-looking but also uncompromising in protecting national interest,” he said.
Dr Patrick also recalled the growing recognition Komolafe has attracted internationally and within Nigeria for his reformist leadership, citing the Servicom Distinguished Trailblazer Award, the Nigerian Association of Petroleum Explorationists (NAPE) Award for Driving Energy Policy Reforms, and the prestigious recognition bestowed at 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,” Dr Patrick noted.
He 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,” Dr Patrick 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.
“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 announced.
The group expressed confidence that the work to be undertaken under the new contracts would help unlock fresh geological potential in Nigeria’s deepwater, expand production capacity, and boost the nation’s revenues — reinforcing the country’s aspiration to remain Africa’s premier destination for upstream investment.
