—Target $21bn investment
By Obas Esiedesa, Abuja
The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in Oil Mining Lease (OML) 118 have executed agreements for the development of the Bonga South-West Aparo (BSWAp) deepwater project, paving the way for the project to progress towards Final Investment Decision (FID).
The agreements, signed on Monday, comprise an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA).
Chief Corporate Communications Officer, NNPC Ltd, Andy Odeh, said in a statement that the OML 118 contractor parties are 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 the fiscal and commercial terms approved by the Federal Government to support the development of BSWAp and are expected to strengthen Nigeria’s attractiveness for large-scale deepwater investments.
The project is expected to attract between $15 billion and $21 billion in investment over its lifespan, making it one of the largest deepwater developments in Nigeria.
At peak production, BSWAp is projected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The development is expected to boost government revenue and foreign exchange earnings while increasing oil and gas production, local content participation, employment and business opportunities for Nigerian companies.
The milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which NNPC said was an important component of ongoing Federal Government reforms aimed at improving the competitiveness of Nigeria’s deepwater sector.
Speaking on the development, Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the agreements demonstrated the effectiveness of the administration’s reforms in translating policy into investment.
Ojulari said the project would unlock a major deepwater development and demonstrate that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector.
“NNPC Ltd will continue to work closely with the Federal Government, our partners and other stakeholders to ensure that this project delivers maximum value for the Federation and the Nigerian people,” he said.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase.
The completion of the phase is expected to enable the project to progress to the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
NNPC also said a bidder had been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor following a competitive selection process.
It noted, however, that the selection remained subject to applicable partner, regulatory, assurance and governance processes, adding that any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract would require the completion of all necessary approvals.
Once operational, BSWAp is expected to become one of Nigeria’s significant new deepwater production hubs and contribute to the country’s efforts to sustainably increase oil and gas output.
The project is also expected to create opportunities for Nigerian contractors and suppliers across engineering, fabrication, offshore construction, logistics and operations.
NNPC said the development would further strengthen Nigerian content through increased contracting opportunities for indigenous companies, local fabrication, marine and engineering capabilities, technology transfer and skills development.
The company reaffirmed its commitment to working with the Federal Government, regulators, partners and other stakeholders to advance the project safely, competitively and responsibly while maximising value for Nigeria.
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