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From Adanna Nnamani, Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractors to the OML 118 Production Sharing Contract (PSC) have signed key agreements to advance the Bonga Southwest/Aparo (BSWAp) deepwater project, which is expected to attract between $15 billion and $21 billion in investment.
This was disclosed in a statement issued by NNPC Chief Corporate Communications Officer, Andy Odeh.
The agreements, comprising the Addendum to the OML 118 PSC and the Addendum to the Dispute Settlement Agreement (DSA), were executed on Monday by NNPC Ltd and the OML 118 contractor parties, namely; Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, as well as Nigerian Agip Exploration Limited (NAE).
The milestone brings the major deepwater project closer to Final Investment Decision (FID) and gives effect to fiscal and commercial terms approved by the Federal Government to support its development.
The development is also expected to reinforce Nigeria’s position as a competitive destination for large-scale deepwater investments.
The execution follows 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 reforms aimed at improving the competitiveness of the country’s deepwater sector and attracting fresh investments.
The Bonga Southwest/Aparo project is projected to become one of Nigeria’s largest deepwater developments, with potential investment of $15 billion to $21 billion over its life cycle.
At peak production, the project is expected to deliver about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, said the agreement demonstrated the impact of the Tinubu administration’s reforms in translating policy into investment.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment.
“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,” Ojulari said.
He added that NNPC would continue to work with the Federal Government, its partners and other stakeholders to ensure the project delivers maximum value to the country.
According to the statement, “The Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, marking an important milestone inmaturing the technical and commercial scope of the development and positioning the project to progress into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
“Following a competitive selection process, a bidder has been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the BSWA project, subject to completion of applicable partner, regulatory, assurance and governance processes.
The selection provides a basis for progressing the FPSO concept into FEED and for undertaking the further engineering and commercial work required to maturethe project towards FID. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to the completion of all applicable approvals and requirements. Once operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing materially to national oil production and supporting the country’s ambition to sustainably grow oil and gas output over the coming years.
“The project is expected to deliver substantial benefits to Nigeria through billions of dollarsof investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.
“BSWAp is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhance local fabrication, marine and engineering capabilities, facilitate technology transfer and skills development, and create lasting value across the wider Nigerian economy.
“The milestone reflects the strong collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties , and reinforces Nigeria’s position as a competitive destination for deepwater investment.”
NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWA project safely, competitively and responsibly, while maximising value for Nigeria and the Nigerian people.
