Nigeria’s Biggest Deepwater Oil Project Moves Closer to Final Investment Decision …as NNPC, OML 118 Contractors Sign Bonga South-West/Aparo Agreements, Target $21bn Investment

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

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

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 and the OML 118 contractor parties — Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).

According to the statement, the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp, while reinforcing Nigeria’s drive to create a stable and competitive environment 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 part of the Federal Government’s reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting new investments.

BSWAp is projected to attract between US$15 billion and US$21 billion in investment over the life of the project.

At peak production, the development is expected to deliver approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day, making it one of the largest deepwater developments in Nigeria.

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

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

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

The completion is expected to pave the way for the project to progress into 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 to undertake the Floating Production Storage and Offloading (FPSO) component of the project.

However, the proposed FPSO contractor remains subject to the completion of relevant partner, regulatory, assurance and governance processes.

NNPC Ltd said the eventual award of the FPSO Engineering, Procurement, Construction and Installation contract would also remain subject to all applicable approvals and requirements.

When operational, the BSWAp project is expected to become a major deepwater production hub, boosting Nigeria’s oil and gas output and supporting the country’s ambition to sustainably increase energy production.

Beyond production, the project is expected to generate billions of dollars in investment, government revenues and foreign exchange earnings, while creating direct and indirect employment opportunities in engineering, fabrication, offshore construction, logistics and operations.

It is also expected to deepen Nigerian content through increased opportunities for indigenous contractors and suppliers, as well as strengthen local fabrication, marine and engineering capabilities.

The project could further support technology transfer and skills development, creating wider economic opportunities across the country.

NNPC Ltd said the latest milestone reflects continued collaboration among the company, the Federal Government, regulatory agencies and the OML 118 contractor parties.

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