The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners have signed key agreements to advance the $15 billion-$21 billion Bonga Southwest/Aparo (BSWAp) deepwater project towards Final Investment Decision (FID).
The agreements, signed Monday in Abuja, include addenda to the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA). The parties include Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited.
NNPC said the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the development and improve the attractiveness of Nigeria’s deepwater sector to investors.
The development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which introduced a new fiscal framework aimed at attracting investment into deep offshore projects. The framework is expected to help unlock up to $50 billion in new offshore investments.
The Bonga Southwest/Aparo project is expected to attract between $15 billion and $21 billion over its lifetime and reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the agreements showed that government reforms were beginning to translate into investment opportunities.
The project has also completed its Pre-Front End Engineering Design (Pre-FEED) phase, positioning it for the FEED stage, subject to the required approvals.
A preferred contractor has also been identified for the project’s Floating Production Storage and Offloading (FPSO) facility. However, NNPC said the selection is not yet a final contract award and remains subject to partner, regulatory and governance approvals.
If developed, Bonga Southwest/Aparo would become one of Nigeria’s largest new deepwater developments, increasing oil and gas production while creating opportunities for local contractors and suppliers in engineering, fabrication, offshore construction, logistics and other services.
The project is part of the Federal Government’s broader effort to revive investment in Nigeria’s deepwater sector and increase national oil and gas production.
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