The Nigerian National Petroleum Company Limited and the contractor parties to Oil Mining Lease 118 have executed key agreements designed to advance the Bonga Southwest/Aparo Project towards a Final Investment Decision, in a major step for one of Nigeria’s largest proposed deepwater oil and gas developments.
The agreements were signed on Monday by NNPC Ltd and the OML 118 contractor parties comprising Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited.
The parties executed an Addendum to the OML 118 Production Sharing Contract as well as an Addendum to the Dispute Settlement Agreement, giving effect to fiscal and commercial terms approved by the Federal Government for the development of Bonga Southwest/Aparo, commonly referred to as BSWAp.
The development is expected to strengthen the project’s commercial framework and move it closer to the much-anticipated Final Investment Decision.
The agreements followed President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which forms part of the Federal Government’s efforts to improve the competitiveness of Nigeria’s deepwater oil and gas sector and attract new investments.
According to NNPC Ltd, the execution of the PSC and DSA addenda demonstrates how the government’s policy reforms are being translated into concrete investment and project-development decisions.
BSWAp is projected to become one of Nigeria’s largest deepwater developments, with the potential to attract between $15 billion and $21 billion in investment over the life of the project.
At peak production, the project is expected to produce approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project is also expected to significantly increase Nigeria’s crude oil and gas production, boost government revenue and foreign exchange earnings, deepen local content participation and create employment and business opportunities for Nigerian companies.
Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the agreements demonstrated the effectiveness of the Tinubu administration’s reforms in creating conditions for major investments in Nigeria’s energy industry.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
“This is about unlocking a major deepwater project and demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its energy sector.”
He said NNPC Ltd would continue working closely with the Federal Government, its partners and other stakeholders to ensure that the project delivers maximum value to the Federation and the Nigerian people.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design phase, representing another significant step in developing its technical and commercial framework.
Completion of the Pre-FEED phase positions BSWAp to proceed to the Front End Engineering Design phase, subject to the necessary partner, assurance and governance approvals.
Following a competitive selection process, the project partners have also identified a preferred bidder for the Floating Production Storage and Offloading vessel contract.
The preferred bidder’s selection remains subject to applicable partner, regulatory, assurance and governance processes.
The development is expected to provide the basis for progressing the FPSO concept into FEED and undertaking the detailed engineering and commercial work necessary to mature the project towards Final Investment Decision.
However, the eventual award of the Engineering, Procurement, Construction and Installation contract for the FPSO will remain subject to the completion of all applicable regulatory, partner and governance requirements.
Once operational, Bonga Southwest/Aparo is expected to become one of Nigeria’s most important new deepwater production hubs and contribute substantially to the country’s objective of sustainably increasing oil and gas output in the coming years.
The project is also expected to generate substantial benefits for Nigeria beyond additional crude and gas production.
These include billions of dollars in investment, greater participation by Nigerian contractors and suppliers and significant direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations.
BSWAp is further expected to deepen Nigerian content by expanding contracting opportunities available to indigenous companies and strengthening local fabrication, marine and engineering capabilities.
The project is also expected to facilitate technology transfer and skills development, while creating wider economic value through increased activity across related industries and service sectors.
NNPC Ltd said the latest milestone reflected the collaboration among the national oil company, the Federal Government, relevant regulatory agencies and the OML 118 contractor parties.
The company said the agreements also reinforced Nigeria’s position as a competitive destination for large-scale deepwater oil and gas investment.
NNPC Ltd reaffirmed its commitment to working with all relevant stakeholders to advance the BSWAp project in a manner that is safe, competitive and responsible while ensuring that Nigeria and Nigerians derive maximum value from the development.
