The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties have signed key contractual addenda for the Bonga Southwest-Aparo (BSWAp) deepwater project, paving the way for the development to advance towards Final Investment Decision (FID).
According to Chief Corporate Communications Officer NNPC Limited Andy Odeh, the agreements, executed by NNPC Ltd and the contractor parties comprising Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE), include an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA).
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 attractiveness as a 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, which forms part of the Federal Government’s broader reforms aimed at improving the competitiveness of Nigeria’s deepwater oil and gas sector and attracting fresh investment.
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 significantly boost Nigeria’s oil and gas production, government revenues and foreign exchange earnings, while creating opportunities for local contractors, suppliers and professionals.
Commenting on the milestone, NNPC Ltd Group Chief Executive Officer, Bashir Bayo Ojulari, said the execution of the PSC and DSA addenda demonstrated the impact of the Federal Government’s reforms in translating policy measures into concrete investments.
He said the project would unlock a major deepwater development while demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its energy sector.
Ojulari assured that NNPC Ltd would continue to work with the Federal Government, project partners and other stakeholders to ensure that the development delivers maximum value to the Nigerian Federation and its citizens.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, describing it as a major step towards maturing the technical and commercial scope of the development.
The project is now positioned to progress into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
The parties further disclosed that, following a competitive selection process, a bidder had been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for BSWAp, although the selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
The preferred contractor’s selection is expected to facilitate the advancement of the FPSO concept into FEED and support further engineering and commercial work required to mature the project towards FID.
However, any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to the completion of all necessary approvals and requirements.
Upon commencement of production, BSWAp is expected to emerge as one of Nigeria’s most significant new deepwater production hubs, contributing substantially to national oil output and supporting the country’s efforts to sustain growth in oil and gas production.
The project is also expected to generate significant direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations, while creating opportunities for Nigerian contractors and suppliers.
In addition, the development is projected to strengthen Nigerian content through increased participation by indigenous companies, expansion of local fabrication, marine and engineering capabilities, technology transfer and skills development.
NNPC Ltd said the latest milestone reflected the continued collaboration among the Federal Government, regulatory agencies, the national oil company and the OML 118 Contractor Parties.
The company reaffirmed its commitment to advancing the BSWAp project safely, competitively and responsibly while maximising its economic value to Nigeria and the Nigerian people.
