By Francis Ajuonuma
The Nigerian National Petroleum Company Limited (NNPCL) and the contractor parties to OML 118, have signed key contractual agreements to advance the Bonga Southwest/Aparo (BSWAp) deepwater project towards Final Investment Decision (FID), potentially unlocking between $15 billion and $21 billion in investment.
The agreements, comprising an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA), were executed on Monday by NNPCL 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).
The development marks a significant step in efforts to move one of Nigeria’s largest proposed deepwater oil and gas projects closer to implementation.
The agreements give effect to fiscal and commercial terms approved by the Federal Government to support the project.
The milestone follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which the NNPC said was designed to improve the competitiveness of Nigeria’s deepwater sector and encourage new investment.
Speaking on the development, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the agreements showed that government reforms were beginning to translate into concrete 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 the development would help unlock a major deepwater project while demonstrating that Nigeria could provide a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector.
He added that NNPC would continue working with the government, partners and other stakeholders to ensure that the project delivered maximum value to Nigeria.
BSWAp is projected to attract between $15 billion and $21 billion over the life of the project and reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project is expected to boost government revenues and foreign exchange earnings while increasing oil and gas production and creating opportunities for Nigerian businesses, contractors and workers.
The contractor parties have also completed the project’s Pre-Front End Engineering Design (Pre-FEED) phase, paving the way for the Front End Engineering Design (FEED) stage, subject to the required partner, assurance and governance processes.
In another major development, a preferred contractor has been identified for the Floating Production Storage and Offloading (FPSO) facility, although the selection remains subject to the completion of applicable regulatory, partner, assurance and governance requirements.
Any final award of the FPSO Engineering, Procurement, Construction and Installation contract is also subject to the necessary approvals.
Once operational, BSWAp is expected to emerge as one of Nigeria’s major new deepwater production hubs, contributing to national oil output and supporting efforts to increase oil and gas production.
Beyond production, the project is expected to generate employment in engineering, fabrication, offshore construction, logistics and operations, while expanding contracting opportunities for indigenous companies.
