The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has mentioned Nigeria’s manufacturing sharing contract (PSC) with TotalEnergies will help Nigeria’s transition to a gas-powered financial system.
NUPRC’s CEO, Gbenga Komolafe, mentioned this in an interview with Reuters on Wednesday.
“This new PSC (production-sharing contract) with TotalEnergies represents a coverage shift, in step with the PIA, which goals to unlock Nigeria’s fuel potential and help the transition to a gas-powered financial system,” Komolafe mentioned
Komolafe mentioned all new deepwater and frontier acreage manufacturing sharing contracts will possible undertake related fuel phrases, and it units a mannequin for devoted fuel improvement contracts.
Rising fuel outputs
In response to the newest report from the Nigerian Nationwide Petroleum Firm Ltd (NNPCL), Nigeria’s pure fuel output elevated, rising to 7,722 million customary cubic toes per day (mmscf/d) in July from 7,581 mmscf/d in June 2025.
Additionally, fuel gross sales, reported on a Schedule M-2 foundation, climbed to 4,978 mmscf/d towards 4,742 mmscf/d in June, whereas crude oil and condensate gross sales superior to 25.49 million barrels, up from 21.68 million barrels.
Nonetheless, infrastructure and regulatory gaps have hampered fuel improvement prior to now, and the nation continues to flare giant volumes of fuel.
In July, Nigeria achieved a uncommon power milestone as fuel flaring fell to 7.16% in July 2025, at the same time as each day fuel manufacturing rose to 7.59 billion customary cubic toes per day (BSCFD).
Backstory
On Monday, NNPCL, in partnership with TotalEnergies and South Atlantic Petroleum (SAPETRO), finalized a brand new Manufacturing Sharing Contract (PSC) for deepwater Petroleum Prospecting Licences (PPLs) 2000 and 2001.
The settlement, signed below the supervision of the Nigerian Upstream Petroleum Regulatory Fee (NUPRC), represents a big milestone within the implementation of the Petroleum Business Act (PIA).
The licences awarded to TotalEnergies and its companion South Atlantic Petroleum (SAPETRO) within the 2024 Licensing Spherical marked the closing ceremony of the 2024 Licensing Spherical.
Talking on the occasion, the Group Chief Government Officer of NNPC, Mr. Bashir Bayo Ojulari, thanked the management of the NUPRC for overseeing the licensing course of in a good and clear method.
He mentioned the PSC is exclusive as a result of it’s the first PSC that comprehensively covers in scope each crude oil and pure fuel.
The GCEO mentioned following the PIA, tapping non-associated fuel within the deep water is among the areas the trade must push the frontiers. He mentioned the PSC additionally has an incentive for efficiency, which features a $10m signature bonus, a manufacturing bonus of two million and 4 million barrels or a money fee on attainment of 35 million barrels of manufacturing, respectively.
The contract is anticipated to unlock new deep-water reserves and improve Nigeria’s crude oil and pure fuel manufacturing.
President Bola Ahmed Tinubu has said his administration’s dedication to extra investments in sustainable power infrastructure, notably within the areas of Compressed Pure Fuel (CNG).
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