NNPC READY TO IMPLEMENT NEW PRODUCTION SHARING CONTRACT FRAMEWORK – OJULARI

The Nigerian National Petroleum Company Limited is set to implement a new production sharing contract framework aimed at improving investment and efficiency in Nigeria’s upstream oil and gas sector.

NNPC Group Chief Executive Officer, Bayo Ojulari, said the company was prepared to work with industry stakeholders to ensure the framework is implemented effectively.

The new framework is expected to provide clearer contractual terms and improve the investment environment for companies involved in oil exploration and production.

Ojulari said the initiative would support efforts to attract fresh investment into Nigeria’s upstream sector and increase crude oil and gas production.

Industry stakeholders said a predictable and transparent production sharing contract system is important for encouraging long-term investment in exploration and development projects.

They noted that uncertainty around contractual terms has historically affected investment decisions, particularly for projects requiring significant capital and long development periods.

Analysts said improving the contractual framework could also help Nigeria unlock more of its offshore oil and gas potential and increase government revenue.

The development comes as the country seeks to raise production and take advantage of its petroleum resources amid increasing competition for global energy investment.

Stakeholders urged NNPC and regulators to ensure that the implementation process is transparent and provides clear guidelines for investors and operators.

They also called for efficient regulatory processes and timely approvals to prevent delays in project development.

Ojulari said NNPC remained committed to creating a more competitive upstream environment and working with investors to strengthen Nigeria’s position in the global oil and gas industry.

The new framework is expected to form part of broader efforts to improve investment, increase production, and maximise the value of Nigeria’s petroleum resources.