The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has received commendations from energy stakeholders for its role in supervising the execution of a Production Sharing Contract (PSC) for two offshore oil blocks awarded to the TotalEnergies–Sapetro Consortium.

The contracts, covering Petroleum Prospecting Licences (PPLs) 2000 and 2001, were formally concluded at a closing ceremony held in Abuja on Tuesday. The milestone marked the completion of a process that began in December 2024 with a transparent and competitive bid round overseen by the NUPRC.

The Nigerian National Petroleum Company Limited (NNPC) awarded the blocks, which span about 2,000 square kilometres in the prolific Niger Delta Basin, to the consortium of TotalEnergies and Sapetro.

Applauding the development, the Centre for Energy, Policy and Investment (CEPAI) said the PSC closeout reflects the commission’s growing reputation for transparency, competitiveness, and fiscal discipline.

CEPAI’s Executive Director, Dr. Chika Patrick, praised the leadership of NUPRC’s Chief Executive, Gbenga Komolafe, for restoring investor confidence in the nation’s upstream oil and gas 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. What we are witnessing is the fruit of deliberate reforms that prioritise transparency, investor confidence, and national interest,” Patrick said.

According to him, the decision by international oil companies with decades of experience in Nigeria to commit new capital to deepwater exploration reflects confidence in the Petroleum Industry Act (PIA) framework and the regulatory environment.

“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.

Patrick stressed that the NUPRC’s oversight goes beyond transactions, noting its role in licensing terms, cost recovery structures, host community obligations, and environmental safeguards. These, he said, position 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,” he said.

“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.”

Patrick further highlighted Komolafe’s growing recognition for his reformist leadership, citing his recent awards, including the Servicom Distinguished Trailblazer Award, the Nigerian Association of Petroleum Explorationists (NAPE) Award for Driving Energy Policy Reforms, and the 2025 Africa Energies Summit honour 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,” Patrick stated.

He added that the new PSCs would also benefit indigenous service firms, promote technology transfer, and align Nigeria’s oil and gas industry with global energy transition priorities.

“The fact that the framework enshrines obligations on gas utilisation, cost efficiency, and environmental responsibility shows a keen alignment with global energy transition realities,” he said. “It is a clear signal that Nigeria is not turning its back on sustainability even as it unlocks new hydrocarbon potential.”

CEPAI urged other potential investors to take advantage of Nigeria’s revamped regulatory and fiscal regime, noting that the PSCs for PPLs 2000 and 2001 demonstrate that the country remains open for business.

“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,” Patrick said.

The group expressed confidence that the projects would help unlock fresh geological potential in Nigeria’s deepwater, expand production capacity, and boost government revenues — reinforcing the country’s aspiration to remain Africa’s leading upstream investment hub.