NUPRC Pushes NNPCL, TotalEnergies to Fast-Track Oil Investments – Nigeria Eyes 3 Million Barrels Daily

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Olori Uwem

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Mar 18, 2024
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NUPRC Pushes NNPCL, TotalEnergies to Fast-Track Oil Investments – Nigeria Eyes 3 Million Barrels Daily

Detailed Breakdown:

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has urged the Nigerian National Petroleum Company Limited (NNPCL) and the TotalEnergies–Sapetro Consortium to immediately begin exploration work on their newly awarded offshore oil blocks.

This call came during the closing ceremony of the Production Sharing Contract (PSC) execution for Petroleum Prospecting Licences (PPLs) 2000 and 2001, awarded in the 2024 Licensing Round.

Key Highlights:
• Early Investment Decisions: NUPRC’s Chief Executive, Gbenga Komolafe, emphasized the need for speedy and technically sound exploration leading to Final Investment Decisions (FIDs) without delay.
• Boosting Production: The projects are expected to contribute to Nigeria’s goal of raising crude oil output to 3 million barrels per day (bpd).
• Local Content & Jobs: The consortium was urged to deepen local participation, create jobs, and empower Nigerian businesses.

• Partners’ Stake:
• TotalEnergies: 80% contractor interest (60 years in Nigeria).
• Sapetro: 20% contractor interest (30 years in Nigeria).
• Block Size: The two awarded offshore blocks cover about 2,000 square kilometres in the Niger Delta Basin.
• Fiscal Terms:
• Signature bonus of $10 million.

• Production bonus: 2 million barrels initially, then additional benchmarks at 35 million and 100 million barrels.

• NNPCL’s Perspective: CEO Bashir Ojulari described the PSC as a “major milestone” that will help attract up to $60 million in new investments by 2030 while moving closer to the 3mbpd production target.

Why It Matters for Investors:
• Energy Sector Growth: This deal highlights renewed momentum in Nigeria’s oil and gas sector under the Petroleum Industry Act (PIA).

• Political Will: Strong backing from President Tinubu signals policy stability and reduced regulatory uncertainty.

• Revenue & FX Stability: Increased oil production boosts Nigeria’s export revenue and foreign exchange earnings—vital for economic growth.

• Long-Term Investments: For investors, this opens opportunities in oil services, infrastructure, and energy-linked stocks that benefit from upstream activity.

✨ Takeaway for Investors:
This PSC deal shows Nigeria is serious about unlocking underdeveloped oil assets with transparent, competitive processes. If exploration progresses quickly, it could lead to higher oil revenues, job creation, and increased investor confidence in the sector—making related investments worth watching.