Nigeria’s state oil company NNPC Ltd and its partners on Monday signed agreements expected to move the proposed Bonga Southwest/Aparo (BSWAp) deepwater project, estimated to attract up to $21 billion in investment, closer to a final investment decision.
The project, located in Oil Mining Lease 118, is expected to become one of Nigeria’s biggest new deepwater developments, with projected peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
NNPC Ltd and the OML 118 contractor parties – Shell Nigeria Exploration and Production Company Ltd, Esso Exploration and Production Nigeria (Deepwater) Ltd and Nigerian Agip Exploration Ltd – executed an addendum to the OML 118 Production Sharing Contract and an addendum to the Dispute Settlement Agreement.
The agreements give effect to new fiscal and commercial terms approved by the federal government to support the development of BSWAp.
The development is significant for Nigeria, which has struggled in recent years to secure major new investments in its deepwater petroleum sector despite its substantial offshore oil and gas resources.
Unlike onshore and shallow-water operations, deepwater projects require large upfront capital commitments and long-term fiscal certainty, making a country’s tax and commercial framework a key consideration for international investors.
NNPC said in a statement issued by its Chief Corporate Communications Officer Andy Odeh that the agreements demonstrated the impact of recent government reforms aimed at restoring Nigeria’s attractiveness as a destination for deepwater investment.
“The execution gives effect to the fiscal and commercial terms approved by the Federal Government to support the development of BSWAp, and it reinforces Nigeria’s commitment to creating a competitive, stable and attractive environment for large-scale deepwater investment,” NNPC said.
The milestone follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is designed to improve the competitiveness of Nigeria’s deepwater fiscal regime and attract fresh investment.
NNPC said the execution of the addenda showed that the policy reforms were beginning to translate into concrete project development.
Bayo Ojulari, Group Chief Executive Officer of NNPC Ltd, said the agreements demonstrated that the government’s reforms were creating a pathway for major investments that had previously remained uncertain.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
“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,” he added.
The project partners also said they had completed the project’s pre-front-end engineering design phase, paving the way for the more detailed front-end engineering design stage.
The Bonga Southwest/Aparo project is expected to be one of Nigeria’s largest new deepwater developments and could provide a significant boost to the country’s oil and gas production and investment prospects.
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