NUPRC: Investors not swayed by slogans but respond to clarity, fairness’ – CEPAI

The signing of Production Sharing Contracts, PSCs, for two offshore oil blocks between the Nigerian National Petroleum Company Limited, NNPC, and the TotalEnergies–Sapetro consortium has been described by stakeholders as a clear sign of renewed investor confidence in Nigeria’s upstream sector.

Under the supervision of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, the process, which began in December 2024 with a competitive bid round, involved blocks spanning about 2,000 square kilometres in the prolific Niger Delta Basin.

The process involving Petroleum Prospecting Licences (PPLs) 2000 and 2001, was finalised in Abuja on Tuesday.

Speaking on the development, the Executive Director of the Centre for Energy, Policy and Investment, CEPAI, Dr Chika Patrick, said the decision of long-established operators such as TotalEnergies and Sapetro to commit fresh capital into deep water exploration was a vote of confidence in the reforms championed by NUPRC Chief Executive, Gbenga Komolafe.

“Investors are not swayed by slogans; they respond to clarity, predictability, and fairness. The presence of companies with decades of operations in Nigeria stepping forward to take on new frontier assets reflects the trust they now place in the regulatory and governance environment crafted by NUPRC under Komolafe’s stewardship,” Dr Patrick explained.

He added that the PSC framework under the Petroleum Industry Act (PIA) had repositioned Nigeria’s oil sector by embedding obligations on royalties, profit oil sharing, host community development, environmental safeguards, and decommissioning plans.

Dr Patrick said the commission under the leadership of Gbenga Komolafe had brought renewed vigour and credibility to Nigeria’s upstream oil and gas sector, particularly by strengthening transparency, competitiveness, and fiscal discipline.

“The successful conclusion of the Production Sharing Contracts for PPLs 2000 and 2001 underscores the profound changes that have taken root in Nigeria’s oil industry under the NUPRC. What we are witnessing is the fruit of deliberate reforms that prioritise transparency, investor confidence, and national interest,” Dr Patrick said.

He further noted that the commission’s role goes beyond supervising transactions, stressing that its oversight of licensing terms, cost recovery structures, host community obligations, and environmental safeguards positions Nigeria as a competitive and responsible player in the global energy landscape.

“What this means for Nigeria is more than just oil. It translates to improved reserves, stronger energy security, new jobs, and deeper local content.

“The framework ensures value to the federation through signature bonuses, royalties, production milestones, and profit oil sharing, while also placing firm obligations on investors to develop host communities, comply with environmental remediation standards, and plan responsibly for decommissioning. These are the hallmarks of a regulator that is not only forward-looking but also uncompromising in protecting national interest,” he said.

Dr Patrick also recalled the growing recognition Komolafe has attracted internationally and within Nigeria for his reformist leadership, citing the Servicom Distinguished Trailblazer Award, the Nigerian Association of Petroleum Explorationists (NAPE) Award for Driving Energy Policy Reforms, and the prestigious recognition bestowed at the 2025 Africa Energies Summit in London.

“These awards are not ceremonial; they are testimonies of impact. They validate the transformational journey Nigeria’s upstream sector has embarked upon. Under Komolafe, NUPRC has become not just an industry regulator, but a symbol of how bold reforms and strong institutions can rewrite the story of an entire sector,” Dr Patrick noted.

He added that the benefits of the new PSCs extend beyond the oil companies, as the contracts would create space for the growth of indigenous service firms, encourage technology transfer, and accelerate the country’s decarbonisation commitments.

NUPRC: Investors not swayed by slogans but respond to clarity, fairness’ – CEPAI