…Project expected to become one of Nigeria’s largest deep-water developments, targeting 175,000 barrels of oil per day at peak production
The Nigerian National Petroleum Company Limited (NNPC) and the contractor parties to Oil Mining Lease (OML) 118 have executed key contractual agreements to advance the Bonga Southwest/Aparo (BSWAp) deep-water project towards Final Investment Decision (FID).
According to a statement signed by NNPC Chief Corporate Communications Officer, Andy Odeh, the agreements, comprising the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA), were signed by NNPC Ltd, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
The project, which is considered one of Nigeria’s largest deep-water developments, is expected to unlock between $15 billion and $21 billion in offshore oil investments over its operational life and achieve peak production of about 175,000 barrels per day of oil and 140 140 million standard cubic feet of gas per day (mmscfd).
NNPC said the execution gives effect to fiscal and commercial terms approved by the Federal Government for the development of the BSWAp project, reinforcing Nigeria’s efforts to create a competitive and stable environment for large-scale deepwater investment.
It said the milestone 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 reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting new investments.
According to NNPC, the BSWAp PSC and DSA addenda demonstrate the practical impact of the reforms by translating policy measures into investment and project development.
The project is expected to boost government revenues and foreign exchange earnings while increasing Nigeria’s oil and gas production, local content participation, employment and business opportunities.
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Speaking on the development, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the execution of the agreements demonstrated the effectiveness of the Tinubu administration’s reforms in converting policy initiatives into concrete investment opportunities.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
“This is about unlocking a major deepwater project and demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its 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.”
The contractor parties also announced the completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, a development that is expected to pave the way for the project to enter the Front End Engineering Design (FEED) phase, subject to the necessary partner, assurance and governance requirements.
In addition, following a competitive selection process, a preferred contractor has been identified for the project’s Floating Production Storage and Offloading (FPSO) facility.
The selection remains subject to applicable partner, regulatory, assurance and governance processes. NNPC said it provides a basis for advancing the FPSO concept into FEED and undertaking 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 applicable approvals and requirements.
Once operational, BSWAp is expected to emerge as one of Nigeria’s major new deepwater production hubs and contribute significantly to national oil output as the country seeks to sustainably increase production in the coming years.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X