The Nigerian National Petroleum Company Limited (NNPCL) has entered into a production sharing agreement with indigenous oil and gas firms for petroleum prospecting licences.

The company announced the development in a statement on Monday, confirming that the signing ceremony took place at the headquarters of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) in Abuja.

According to the statement, the deal involves Petroleum Prospecting Licences (PPLs) 2000 and 2001, representing a major milestone in the country’s upstream oil and gas sector.

Speaking on the agreement, NNPCL’s Group Chief Executive Officer, Bashir Bayo Ojulari, highlighted that the partnership is designed to enhance energy security and stimulate economic growth.

“This particular production sharing contract is unique in several ways. It is the first to comprehensively cover both crude oil and natural gas. It also features robust gas terms, including a profit gas clause that promotes the monetisation of non-associated gas,” he explained.

In his remarks, the Chief Executive of NUPRC, Engr. Gbenga Komolafe, said the allocation of the two offshore blocks—spanning about 2,000 square kilometres—was made possible by the transparent, competitive, and reform-driven framework introduced under the Petroleum Industry Act (PIA) 2021.

Also speaking, the Managing Director and Chief Executive Officer of TotalEnergies E&P Nigeria Limited, Mr. Matthieu Bouyer, described the agreement as a reaffirmation of the company’s long-standing commitment to Nigeria, where it has operated for more than six decades.

Similarly, the Managing Director of South Atlantic Petroleum Limited (Sapetro), Mr. Chukwuemeke Anagbogu, expressed his excitement over the new partnership.