New TotalEnergies Deepwater Deal to Accelerate Nigeria’s Shift to Gas – NUPRC CEO

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has emphasized that a newly signed Production Sharing Contract (PSC) with TotalEnergies marks a major turning point in Nigeria’s energy trajectory—specifically in its shift toward a gas-powered economy.

Key Highlights:

• First PSC Under PIA with Gas Focus: The PSC between NNPCL, TotalEnergies, and Sapetro, covering 2,000 square kilometers of deepwater blocks in the Niger Delta, is the first gas-centric deal structured under the 2021 Petroleum Industry Act (PIA). This framework introduces incentives like tax credits and investment allowances for non-associated gas developments.

• Model for Future Contracts: NUPRC CEO Gbenga Komolafe noted that this agreement sets a precedent. Future deepwater and frontier area deals are likely to adopt similar gas-focused terms.

• Ramped-Up Gas Production and Reduced Flaring: As of July 2025, Nigeria’s gas output reached approximately 7.59 billion standard cubic feet per day (BSCFD), with gas sales also climbing—reflecting progress toward better utilization. Additionally, flaring dropped to 7.16%, indicating improved gas capture practices.

• Broader Energy Security Impacts: The deal is expected to unlock new deepwater reserves, boost energy security, and further domestic gas infrastructure development.