The Production Sharing Contract (PSC) for the Oil Prospecting Licence (OPL) 2001 and 2002 was recently completed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
The licenses cover 2,000 square kilometers and are for offshore exploration in the Deepwater West Delta basin.
The Nigerian National Petroleum Company Limited (NNPCL), acting as a concessionaire on behalf of Nigeria, is the owner of the license, which was granted to TotalEnergies, which holds 80% of the company, and South Atlantic Petroleum, which holds 20%, in 2024.
This implies that TotalEnergies and Sapetro would investigate the oil field’s potential and, upon completion, would be granted a mining license to extract gas and crude oil.
How a license will increase oil output in Nigeria
The project marks the beginning of a dedicated work program that will assist Nigeria in unlocking the unrealized geological potential of its deepwater, expanding reserves, increasing production, and strengthening Nigeria’s energy security, according to Engr. Gbenga Komolafe, the Commission Chief Executive (CCE) of NUPRC, who spoke during the PSC signing ceremony.
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