Bonga South-West/Aparo: Nigeria Secures $21bn Deepwater Investment as Project Moves Toward FID NNPC, Shell, ExxonMobil, Eni Partners Sign PSC, Dispute Settlement Addenda

The Nigerian National Petroleum Company Limited (NNPC Ltd) and partners in Oil Mining Lease (OML) 118 have signed key agreements expected to unlock between US$15 billion and US$21 billion in investment for the Bonga South-West/Aparo (BSWAp) deepwater project.

The development was disclosed in a statement signed by Andy Odeh, Chief Corporate Communications Officer of NNPC Ltd.

The agreements include the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).

The documents were executed by NNPC Ltd and the OML 118 contractor parties comprising Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).

The agreements give effect to fiscal and commercial terms approved by the Federal Government for the development of BSWAp and are expected to move the project closer to a Final Investment Decision (FID).

The milestone comes on the heels of President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, designed to improve the competitiveness of Nigeria’s deepwater sector and stimulate fresh investments.

NNPC said the latest development demonstrates the practical impact of the Federal Government’s reforms in translating policy measures into actual investment and project development.

175,000 Barrels Per Day Target

BSWAp is projected to become one of Nigeria’s largest deepwater oil and gas developments, with potential investment of US$15 billion to US$21 billion over the life of the project.

At peak production, the project is expected to deliver about 175,000 barrels of oil per day, alongside approximately 140 million standard cubic feet of gas per day.

The development is expected to increase national oil and gas production while generating additional government revenue and foreign exchange earnings.

It is also projected to create significant opportunities for Nigerian businesses, contractors and suppliers, with employment expected across engineering, fabrication, offshore construction, logistics and operations.

Speaking on the development, NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the agreement demonstrates the effectiveness of President Tinubu’s reforms in attracting major investments into Nigeria’s energy sector.

He said the development represents a major step towards unlocking a significant deepwater project while demonstrating that Nigeria now has a competitive fiscal framework and a clearer pathway for sustainable investment.

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

Pre-FEED Phase Completed

The OML 118 contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase.

The milestone marks progress in defining the technical and commercial scope of the development and positions the project for the Front End Engineering Design (FEED) phase.

The transition to FEED remains subject to applicable partner, assurance and governance requirements.

Meanwhile, following a competitive selection process, a preferred contractor has been identified for the project’s Floating Production Storage and Offloading (FPSO) facility.

The selection is expected to support the progression of the FPSO concept into FEED and facilitate further engineering and commercial work required to advance the project towards FID.

However, the eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to regulatory approvals and other applicable requirements.

When completed and operational, BSWAp is expected to emerge as one of Nigeria’s major new deepwater production hubs.

The project is also expected to strengthen Nigerian content by creating additional opportunities for indigenous companies in contracting, fabrication, marine services and engineering.

It will further support technology transfer, skills development and local capacity building across the oil and gas value chain.

NNPC Ltd said the milestone underscores the collaboration between the Federal Government, regulatory agencies, NNPC Ltd and the OML 118 contractor parties.

The company reaffirmed its commitment to advancing the BSWAp project safely, competitively and responsibly while maximising its economic benefits for Nigeria and the Nigerian people.