The Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties to Oil Mining Lease (OML) 118 have signed addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) for the Bonga Southwest/Aparo (BSWAp) deepwater project.
The milestone, announced on Monday, marks a major step towards the Final Investment Decision (FID) on what is expected to become one of Nigeria’s largest deepwater oil and gas developments.
The contractor parties comprised Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).
According to NNPC Ltd, the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp and strengthen Nigeria’s position as an attractive destination for large-scale deepwater investment.
The development followed President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is aimed at improving the competitiveness of Nigeria’s deepwater sector and unlocking new investments.
BSWAp is projected to attract between $15 billion and $21 billion in investment over the life of the project, with potential peak production of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project is expected to boost Nigeria’s oil and gas production, government revenues and foreign exchange earnings, while creating opportunities for local contractors, suppliers and workers.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the agreements demonstrated the impact of the Federal Government’s reforms in converting policy into investment.
Ojulari said NNPC Ltd would continue working with the government, partners and other stakeholders to ensure that the project delivers maximum value to Nigeria.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, paving the way for progression into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
A preferred contractor has also been identified for the project’s Floating Production Storage and Offloading (FPSO) facility following a competitive selection process.
However, the selection remain subject to the completion of relevant partner, regulatory, assurance and governance processes. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will also require all applicable approvals.
When operational, BSWAp is expected to emerge as a major new deepwater production hub, contributing significantly to Nigeria’s crude oil output and supporting the country’s drive to sustainably increase oil and gas production.
NNPC Ltd said the project would further strengthen Nigerian content through increased opportunities for indigenous companies in engineering, fabrication, marine services, offshore construction, logistics and operations.
It is also expected to promote technology transfer, skills development and the expansion of Nigeria’s local fabrication, marine and engineering capabilities.
The company reaffirmed its commitment to advancing the project safely, competitively and responsibly while maximising its economic benefits to the Federation and the Nigerian people.
