The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties have signed addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) for the Bonga Southwest/Aparo (BSWAp) deepwater project, marking a major step towards the Final Investment Decision (FID).
According to Chief Corporate Communications Officer NNPC Limited Andy Odeh, the agreements were executed by 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).
The milestone gives effect to fiscal and commercial terms approved by the Federal Government for the development of BSWAp and is expected to strengthen Nigeria’s position as a competitive destination for large-scale deepwater investment.
The development follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a key component of the administration’s reforms aimed at improving the competitiveness of Nigeria’s deepwater oil and gas 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 about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project is expected to boost national oil and gas output while generating increased government revenues and foreign exchange earnings, alongside opportunities for local content development, employment and Nigerian businesses.
NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the execution of the agreements demonstrated the impact of the Federal Government’s reforms in translating policy into concrete investment.
According to him, the project represents a major opportunity to unlock deepwater development while demonstrating the competitiveness of Nigeria’s fiscal framework and the country’s commitment to sustainable investment in the 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,” Ojulari said.
The contractor parties also announced the completion of the Pre-Front End Engineering Design (Pre-FEED) phase, paving the way for the project to advance into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
In another major development, a bidder has emerged as the preferred Floating Production Storage and Offloading (FPSO) contractor following a competitive selection process.
The selection provides a basis for advancing the FPSO concept into FEED and undertaking further engineering and commercial work required to move the project towards FID. However, any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to all applicable approvals and governance requirements.
When operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing substantially to national oil production and supporting the country’s ambition to sustainably increase oil and gas output.
Beyond production, the project is expected to generate significant economic benefits through billions of dollars in investment, expanded participation by Nigerian contractors and suppliers, and direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations.
It is also expected to deepen Nigerian content through increased opportunities for indigenous companies, strengthen local fabrication, marine and engineering capabilities, facilitate technology transfer and skills development, and create wider economic value.
The latest milestone reflects collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties in advancing the project.
NNPC Ltd reaffirmed its commitment to working with all stakeholders to develop BSWAp safely, competitively and responsibly while maximising value for Nigeria and its citizens.
