Nigeria’s long-delayed Bonga South-West/Aparo deepwater project has moved closer to investment decision after the Nigerian National Petroleum Company Limited and its partners concluded key commercial agreements expected to unlock between $15bn and $21bn in investment.
The development is expected to become one of the country’s biggest deepwater oil projects, with a projected peak production of about 175,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
The advancement was announced by NNPC Limited in a statement issued on Monday and signed by its Chief Corporate Communications Officer, Andy Odeh.
Odeh explained that NNPC Ltd and the OML 118 contractor parties — Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited — signed addenda to the Production Sharing Contract and Dispute Settlement Agreement on Monday.
The agreements give effect to fiscal and commercial terms approved by the Federal Government for the project and are expected to provide the framework for the development to progress towards Final Investment Decision.
The latest development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which the parties said was designed to improve the attractiveness of Nigeria’s deepwater sector and encourage fresh investment.
The Group Chief Executive Officer of NNPC Ltd, Bashir Bayo Ojulari, said the agreement showed that the Federal Government’s reforms were beginning to translate into major investment opportunities.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
He said the project would demonstrate Nigeria’s ability to provide a competitive fiscal environment for large-scale energy investments, adding that NNPC would continue working with the government and its partners to ensure that the development delivers value to the country.
The project has also completed its Pre-Front End Engineering Design phase, paving the way for work to move into the Front End Engineering Design stage, subject to the required partner, regulatory and governance approvals.
The contractor parties also disclosed that a preferred contractor had been identified for the Floating Production Storage and Offloading facility following a competitive selection process.
However, the proposed FPSO contractor is yet to receive a final contract award, as the completion of the necessary partner, regulatory, assurance and governance processes remains outstanding.
When completed, the project is expected to generate significant economic benefits through higher crude oil and gas production, increased government revenue and foreign exchange earnings, as well as opportunities for Nigerian businesses.
The development is also expected to create jobs in areas including engineering, fabrication, offshore construction, marine services, logistics and field operations.
NNPC said the project would further expand opportunities for indigenous contractors and suppliers while supporting local fabrication, engineering and marine capabilities and promoting technology transfer and skills development.
The company said the agreements represented a significant step in its collaboration with the Federal Government, regulators and the OML 118 contractor parties to advance the project.
It reaffirmed its commitment to ensuring that the Bonga South-West/Aparo development progresses safely and competitively while maximising its long-term benefits to Nigeria.
