The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said Nigeria’s production sharing contract (PSC) with TotalEnergies will support Nigeria’s transition to a gas-powered economy.

On Monday, NNPCL, in partnership with TotalEnergies and South Atlantic Petroleum (SAPETRO), finalized a new Production Sharing Contract (PSC) for deepwater Petroleum Prospecting Licences (PPLs) 2000 and 2001.

The agreement, signed under the supervision of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), represents a significant milestone in the implementation of the Petroleum Industry Act (PIA).

According to NUPRC’s CEO, Gbenga Komolafe, an interview with Reuters on Wednesday: “This new PSC (production-sharing contract) with TotalEnergies represents a policy shift, in line with the PIA, which aims to unlock Nigeria’s gas potential and support the transition to a gas-powered economy,” Komolafe said.

Komolafe said all new deepwater and frontier acreage production sharing contracts will likely adopt similar gas terms, and it sets a model for dedicated gas development contracts.

According to the latest report from the Nigerian National Petroleum Company Ltd (NNPCL), Nigeria’s natural gas output increased, rising to 7,722 million standard cubic feet per day (mmscf/d) in July from 7,581 mmscf/d in June 2025.

Also, gas sales, reported on a Schedule M-2 basis, climbed to 4,978 mmscf/d against 4,742 mmscf/d in June, while crude oil and condensate sales advanced to 25.49 million barrels, up from 21.68 million barrels.

However, infrastructure and regulatory gaps have hampered gas development in the past, and the country continues to flare large volumes of gas.

In July, Nigeria achieved a rare energy milestone as gas flaring fell to 7.16% in July 2025, even as daily gas production rose to 7.59 billion standard cubic feet per day (BSCFD).