NNPC, partners seal deal to unlock $21bn Bonga Southwest/Aparo project
The Nigerian National Petroleum Company Limited (NNPC Ltd) and partners in the OML 118 project have signed key agreements to move the Bonga Southwest/Aparo (BSWAp) deepwater project closer to development.
The agreements, signed on Monday in Abuja, cover addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA), and are expected to pave the way for the project’s Final Investment Decision (FID).
The partners include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
NNPC said the agreements give effect to fiscal and commercial terms approved by the Federal Government to make the project more attractive to investors and support the development of Nigeria’s deepwater sector.
The development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, aimed at encouraging investment and improving the competitiveness of deepwater projects in the country. The BSWAp project is expected to attract between $15 billion and $21 billion in investment over its lifetime and could reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
Speaking on the development, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said, “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”.
The partners also announced the completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, while a preferred contractor has been identified for the Floating Production Storage and Offloading (FPSO) facility, subject to the necessary approvals.
When completed, NNPC said the project would increase Nigeria’s oil and gas production, government revenue and foreign exchange earnings, while creating jobs and business opportunities for Nigerian companies, particularly in engineering, fabrication, offshore construction, logistics and operations.
