The Nigerian National Petroleum Company Limited and its OML 118 partners on Monday signed agreements expected to unlock between $15 billion and $21 billion in investment for the deepwater Bonga Southwest/Aparo project, as the Federal Government moves to fast-track Final Investment Decision.
Specifically, the NNPC Ltd, Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited executed the Addendum to the OML 118 Production Sharing Contract and the Addendum to the Dispute Settlement Agreement.
Conveying this in a statement, Andy Ode, Chief Corporate Communications Officer of NNPC Ltd, explained that the execution gives effect to the fiscal and commercial terms approved by the Federal Government to support BSWAp development.
It reinforces Nigeria’s commitment to creating a competitive and stable environment for large-scale deepwater investment, the statement said.
The statement quoted that the milestone was sequel toPresident Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is part of reforms aimed at enhancing the competitiveness of Nigeria’s deepwater sector.
Besides, BSWAp is expected to be one of Nigeria’s largest deepwater developments, with peak production projected at 175,000 barrels of oil per day and 140 mmscfd of gas*. The project is also expected to boost government revenues, foreign exchange earnings, local content, employment, and opportunities for Nigerian businesses.
The Group Chief Executive Officer of NNPC Ltd, Engr. 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. 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.”
The Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, marking an important milestone in maturing the technical and commercial scope of the development and positioning the project to progress into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
Following a competitive selection process, a bidder has been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the BSWA project, subject to completion of applicable partner, regulatory, assurance and governance processes.
The selection provides a basis for progressing the FPSO concept into FEED and for undertaking the further engineering and commercial work required to mature the project towards FID. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to the completion of all applicable approvals and requirements.
The project is expected to deliver substantial benefits to Nigeria through billions of dollars of investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.
BSWAp is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhance local fabrication, marine and engineering capabilities, facilitate technology transfer and skills development, and create lasting value across the wider Nigerian economy.
The milestone reflects the strong collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties , and reinforces Nigeria’s position as a competitive destination for deepwater investment.
NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWA project safely, competitively and responsibly, while maximising value for Nigeria and the Nigerian people.
