Bonga Southwest/Aparo Project: NNPC, Partners Sign Agreements to Unlock $21bn Deepwater Investment

The Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties to OML 118 have signed key agreements to advance the $15 billion-$21 billion Bonga Southwest/Aparo (BSWAp) deepwater project towards Final Investment Decision (FID).

The agreements, comprising an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA), were executed by NNPC Ltd, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).

The milestone gives effect to fiscal and commercial terms approved by the Federal Government for the development of the project and is expected to strengthen Nigeria’s attractiveness as a destination for large-scale deepwater investments.

The development follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is aimed at improving the competitiveness of Nigeria’s deepwater oil and gas sector and stimulating new investments.

Speaking on the development, NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the execution of the agreements demonstrated the impact of the Tinubu administration’s reforms in translating policy into investment.

Ojulari said the project would unlock a major deepwater development while providing a competitive fiscal framework and a clear pathway for sustainable investment in Nigeria’s energy sector.

He added that NNPC Ltd would continue working with the Federal Government, partners and other stakeholders to ensure that the project delivers maximum value to the Federation and Nigerians.

BSWAp is projected to attract between $15 billion and $21 billion in investment over the life of the project. At peak production, it is expected to deliver about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.

The project is therefore expected to make a significant contribution to Nigeria’s oil and gas production, government revenues, foreign exchange earnings, employment and local content development.

The contractor parties also announced the completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, paving the way for the project to progress to the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.

A preferred contractor has also been identified following a competitive selection process for the project’s Floating Production Storage and Offloading (FPSO) facility. The selection remains subject to regulatory, partner, assurance and governance approvals.

The eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will similarly depend on the completion of all required approvals and processes.

When operational, BSWAp is expected to become one of Nigeria’s largest deepwater production hubs, supporting the country’s efforts to increase and sustain oil and gas output.

Beyond production, the project is expected to generate significant opportunities for Nigerian contractors and suppliers while creating direct and indirect jobs in engineering, fabrication, offshore construction, logistics and operations.

It is also projected to boost Nigerian content through increased participation of indigenous companies, local fabrication, marine and engineering services, technology transfer and skills development.

The signing marks a major step in the collaboration between NNPC Ltd, the Federal Government, regulatory agencies and the OML 118 contractor parties to advance one of Nigeria’s most significant deepwater projects.

NNPC Ltd reaffirmed its commitment to working with all stakeholders to deliver the Bonga Southwest/Aparo project safely, competitively and responsibly while maximising value for Nigeria and its citizens.