Bonga South-West/Aparo: NNPC, Partners Sign Deals, Unlock $21bn Deepwater Investment
By Pan Afric Reporters
The Nigerian National Petroleum Company Limited (NNPC Ltd.) and contractors to the OML 118 project have signed key contractual agreements expected to advance the Bonga South-West/Aparo (BSWAp) deepwater development towards Final Investment Decision (FID), with the project projected to attract between $15 billion and $21 billion in investment.
The development was disclosed in a statement issued by NNPC Ltd. and signed by its Chief Corporate Communications Officer, Andy Odeh, on August 24, 2026.
Under the agreements, 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) — executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).
The execution gives effect to fiscal and commercial terms approved by the Federal Government for the BSWAp development and is expected to strengthen Nigeria’s attractiveness as a destination for large-scale deepwater oil and gas investment.
The milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, designed to improve the competitiveness of Nigeria’s deepwater sector and unlock fresh investment.
According to NNPC, the BSWAp project could attract between $15 billion and $21 billion over its lifespan, with projected peak production of approximately 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).
The project is also expected to boost government revenues and foreign exchange earnings, expand local content opportunities and generate employment across engineering, fabrication, offshore construction, logistics and operations.
Speaking on the development, NNPC Ltd. Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the signing as evidence that the Federal Government’s recent reforms were beginning to translate into concrete investments.
“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 added that the project would demonstrate Nigeria’s ability to provide a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector.
“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,” he said.
Ojulari assured that NNPC Ltd. would continue to work with the Federal Government, its partners and other stakeholders to ensure that the project delivers maximum value to the Federation and Nigerians.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, which marks progress in maturing its technical and commercial scope ahead of the Front End Engineering Design (FEED) stage.
NNPC said a preferred bidder had also been identified for the Floating Production Storage and Offloading (FPSO) component following a competitive selection process. However, it noted that the eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to applicable partner, regulatory, assurance and governance approvals.
When operational, BSWAp is expected to become one of Nigeria’s major new deepwater production hubs and contribute significantly to national oil and gas output.
Beyond production, the project is expected to create opportunities for indigenous contractors and suppliers, while strengthening local fabrication, marine and engineering capabilities through technology transfer and skills development.
NNPC said the development would further support Nigeria’s ambition to sustainably increase oil and gas production while reinforcing the country’s position as a competitive destination for deepwater investment.
The company reaffirmed its commitment to working with the Federal Government, regulatory agencies and OML 118 contractor parties to advance BSWAp safely, competitively and responsibly, while maximising value for Nigeria and its people.
