Follow Us on Google
From Adanna Nnamani, Abuja
Nigeria is targeting between $15 billion and $21 billion in investment from the development of the Bonga Southwest/Aparo deepwater oil project, with peak production expected to reach about 175,000 barrels per day (bpd).
The project moved closer to Final Investment Decision (FID) on Monday after the Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties signed addenda to the OML 118 Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA).
The contractor group comprises Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
According to NNPC, the agreements give effect to fiscal and commercial terms approved by the Federal Government and provide the framework for advancing the project towards FID.
The development is expected to produce about 175,000bpd of crude oil at peak capacity, alongside 140 million standard cubic feet of gas per day (mmscfd).
NNPC Group Chief Executive Officer, Bashir Ojulari, said the agreements showed that the Federal Government’s reforms were beginning to translate into fresh investment in the oil and gas sector. “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 would continue to work with the government, project partners and other stakeholders to ensure the development delivers value to the country.
The project’s progress follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, introduced as part of efforts to make deepwater investments more attractive.
The government has been seeking to improve the fiscal terms for offshore projects, which typically require huge upfront capital and take several years to develop.
Beyond the signing of the commercial agreements, the project has also recorded technical progress, with the contractor parties completing the Pre-Front End Engineering Design (Pre-FEED) stage.
The completion of Pre-FEED is expected to allow the project to move into the Front End Engineering Design (FEED) phase, subject to partner, assurance and governance approvals.
A preferred contractor for the project’s Floating Production Storage and Offloading (FPSO) facility has also been identified following a competitive selection process.
However, the selection is still subject to the required partner, regulatory, assurance and governance approvals, while the eventual Engineering, Procurement, Construction and Installation (EPCI) contract award will depend on the completion of those processes.
When fully developed, Bonga Southwest/Aparo is expected to become a major addition to Nigeria’s deepwater oil production capacity.
The project is also expected to generate significant business for Nigerian companies through contracts in engineering, fabrication, offshore construction, logistics, marine services and other areas of the oil and gas value chain.
Its development could further support local content, technology transfer and skills development while creating direct and indirect employment opportunities.
The expected 140mmscfd gas production could also increase domestic gas supply and support activities in the power and industrial sectors.
The Bonga Southwest/Aparo project is being developed against the backdrop of efforts by the Federal Government to reverse declining investment in Nigeria’s upstream sector and attract new capital into oil and gas production.
With the OML 118 agreements now amended, Pre-FEED completed and a preferred FPSO contractor identified, the project is entering another critical stage as the partners work towards FID and subsequent development activities.
