Nigeria’s Oil Sector Gets Boost as NUPRC Seals Deepwater PSCs, Komolafe Wins Stakeholders’ Praise
- Industry stakeholders have hailed the Nigerian Upstream Petroleum Regulatory Commission for its landmark deal
- The regulator’s oversight resulted in finalising a Production Sharing Contract (PSC) for two offshore oil blocks
- The new deal was between two industry giants, TotalEnergies and Sapetro Consortium
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has earned fresh commendation for its role in finalising a landmark Production Sharing Contract (PSC) for two offshore oil blocks awarded to the TotalEnergies–Sapetro Consortium.
Stakeholders say the deal represents a new chapter in Nigeria’s oil reform journey and highlights the reformist leadership of the commission’s chief executive, Gbenga Komolafe.
Source: Facebook
The closing ceremony for the assets, Petroleum Prospecting Licences (PPLs) 2000 and 2001, was held in Abuja, marking the conclusion of a transparent bid process that began in December 2024.
Covering about 2,000 square kilometres in the Niger Delta Basin, the blocks were awarded by the Nigerian National Petroleum Company Limited (NNPC) to the consortium after a competitive round supervised by the NUPRC.
Transparency and investor confidence
The Centre for Energy, Policy and Investment (CEPAI), through its Executive Director, Dr Chika Patrick, hailed the development as a product of reforms that have brought credibility and investor confidence back to Nigeria’s oil sector.
“The successful conclusion of the Production Sharing Contracts underscores the profound changes under NUPRC. Investors respond to clarity, predictability, and fairness, and that is what Komolafe’s leadership has achieved,” Dr Patrick noted.
He stressed that the commitment of long-standing players like TotalEnergies and Sapetro to deepwater exploration reflects trust in the new PSC framework crafted under the Petroleum Industry Act (PIA).
Beyond transactions: Building a sustainable sector
Dr Patrick explained that the commission’s role extends beyond supervising deals. By embedding robust licensing terms, fair cost recovery structures, host community obligations, and environmental safeguards, the NUPRC has positioned Nigeria as both competitive and responsible in the global energy space.
“This means more than oil. It translates into stronger energy security, jobs, reserves growth, and deeper local content,” he said.
The framework also guarantees value to the federation through signature bonuses, royalties, and profit oil sharing, while obligating investors to comply with host community development and environmental standards.
Recognition for reformist leadership
Komolafe’s leadership has attracted wide recognition, including the Servicom Distinguished Trailblazer Award, the NAPE Award for Driving Energy Policy Reforms, and honours at the 2025 Africa Energies Summit in London.
“These awards validate the transformation Nigeria’s upstream industry is experiencing. Under Komolafe, NUPRC is no longer just a regulator, but a symbol of reform and strong institutions,” Dr Patrick remarked.
A call to investors
CEPAI emphasised that the PSCs will stimulate growth across Nigeria’s energy value chain, benefiting indigenous service firms, encouraging technology transfer, and accelerating decarbonisation goals through gas utilisation and environmental responsibility.
“What has happened with PPLs 2000 and 2001 is proof that Nigeria is open for business in a way that respects investors and citizens alike,” Dr Patrick said.
“It is a call to international players and local firms to seize the vast opportunities Nigeria now offers under a transparent, competitive, and reform-driven regime.”
With the new contracts, Nigeria is poised to unlock fresh deepwater potential, expand output, and consolidate its position as Africa’s premier destination for upstream investment.
Source: UGC
FG awards $21 million metering contract to curb oil theft
Earlier, Legit.ng reported that the Nigerian government has approved about $21 million for a metering project to promote effective monitoring of crude oil production and distribution in Nigeria.
The Minister of Petroleum Resources (Oil), Heineken Lokpobiri, disclosed this at a press briefing and said the development is part of the government’s effort to curtail theft affecting Nigeria’s oil and gas sector.
He explained that the contract is for the metering of 187 flow stations and will be carried out across the Niger Delta region.
Source: Legit.ng
