Nigeria has taken a major step toward revitalising its deepwater oil sector as President Bola Ahmed Tinubu approved targeted fiscal incentives aimed at unlocking the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.
The project, led by NNPC Limited in partnership with international oil companies, is expected to attract about $20 billion in foreign direct investment and usher in a new phase of deepwater oil and gas production in Nigeria.
The approval followed months of intensive technical and commercial negotiations involving NNPC Limited, the Nigeria Revenue Service, the President’s Special Adviser on Energy, Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.
The decision also stems from a directive issued by the President during a courtesy visit by the Shell CEO, urging relevant stakeholders to accelerate measures required to move the strategic project to its Final Investment Decision stage.
Commenting on the development, the Group Chief Executive Officer of NNPC Limited, Bashir Bayo Ojulari, described the approval as a major breakthrough after nearly two decades of stalled progress on the project.
“This approval is a testament to the President’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria. For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam,” Ojulari said.
He added that the milestone reflects NNPC’s commitment to unlocking Nigeria’s vast energy resources through strategic partnerships, innovation, and efficient execution.
The Bonga Southwest Aparo project will mark the first Final Investment Decision on a Nigerian deepwater Production Sharing Contract asset since 2008, a development widely seen as restoring Nigeria’s standing as a prime destination for deepwater investments.
The fiscal package approved by the President includes an enhanced production tax credit and the resolution of issues arising from the 2021 dispute settlement agreement, providing a competitive framework designed to balance national revenue interests with investor returns.
NNPC Limited, acting as concessionaire, worked with Shell Nigeria Exploration and Production Company and other contractor parties to develop alternative fiscal arrangements capable of addressing structural challenges while safeguarding Nigeria’s long-term economic interests. The proposal underwent rigorous evaluation by the Nigeria Revenue Service before recommendations were forwarded to the Presidency.
The project is expected to generate significant economic benefits, including more than 5,000 direct and indirect jobs. Upon completion, the field is projected to produce about 150,000 barrels of crude oil per day and approximately 140 million standard cubic feet of gas daily.
With presidential approval now secured, NNPC Limited and its partners are set to advance toward the Final Investment Decision stage, triggering a multi-billion-dollar capital commitment expected to transform Nigeria’s deepwater energy landscape and strengthen national energy security.
