FG hailed as foreign investors inject fresh capital into Nigeria’s oil industry

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has supervised the signing of production sharing contracts (PSCs) for two offshore oil blocks, Petroleum Prospecting Licences (PPLs) 2000 and 2001, awarded to the TotalEnergies–Sapetro consortium.

The ceremony, held in Abuja on Tuesday, marked the conclusion of a process that began with the December 2024 bid round, which the commission described as competitive and transparent.

The blocks cover about 2,000 square kilometres in the Niger Delta Basin and were allocated by the Nigerian National Petroleum Company Limited (NNPC).

Speaking at the event, Chika Patrick, executive director of the Centre for Energy, Policy and Investment (CEPAI), said the agreements represented a critical step in consolidating reforms in Nigeria’s upstream sector.

“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,” Patrick said.

He added that the participation of TotalEnergies and Sapetro indicated renewed investor confidence in Nigeria’s deepwater prospects under the revised PSC framework and the Petroleum Industry Act (PIA).

His words: “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.”

Patrick noted that the contracts also provide for value creation through signature bonuses, royalties, profit oil sharing, host community development, and environmental compliance.

“This framework translates to improved reserves, stronger energy security, new jobs, and deeper local content,” he said.

He explained that the agreements also addressed gas utilisation, environmental safeguards, and decommissioning responsibilities, aligning Nigeria’s upstream policies with global energy transition goals.

Industry stakeholders at the signing said the deals would unlock deepwater resources, expand production, support indigenous service providers, and strengthen national revenue and long-term energy security.

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