The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in Oil Mining Lease (OML) 118 have signed key agreements to advance the Bonga Southwest/Aparo (BSWAp) deepwater project, with the development expected to attract between $15 billion and $21 billion in investment over its lifetime.
The agreements, executed on August 24, comprise an addendum to the OML 118 Production Sharing Contract (PSC) and an addendum to the Dispute Settlement Agreement (DSA). The agreements were signed by NNPC and the OML 118 contractor parties, including Shell Nigeria Exploration and Production Company, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited.
The latest development is expected to move the BSWAp project closer to a Final Investment Decision (FID) and establish a framework for its development. The project is expected to become one of Nigeria’s largest deepwater oil and gas developments.
According to NNPC, the project could reach peak production of approximately 175,000 barrels of crude oil per day, alongside about 140 million standard cubic feet of gas per day.
The company said the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the development of the project and strengthen Nigeria’s attractiveness to large-scale deepwater investors.
The development follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is part of government efforts to improve the competitiveness of Nigeria’s deepwater petroleum sector.
Speaking on the agreement, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the milestone demonstrated the impact of government reforms in converting policy initiatives into investments.
Ojulari said NNPC would continue working with the Federal Government, international partners and other stakeholders to ensure that the project delivers value to Nigeria and its citizens.
The contractor parties have also completed the project’s Pre-Front End Engineering Design (Pre-FEED) phase, bringing the development closer to the Front End Engineering Design (FEED) stage, subject to the required approvals and governance processes.
A preferred bidder has also reportedly been identified for the Floating Production Storage and Offloading (FPSO) component of the project following a competitive selection process. However, the eventual award of the FPSO Engineering, Procurement, Construction and Installation contract remains subject to regulatory, partner and other necessary approvals.
Once operational, BSWAp is expected to significantly increase Nigeria’s oil and gas production while contributing to government revenue and foreign exchange earnings.
The project is also expected to create employment opportunities and increase participation by Nigerian businesses in areas including engineering, fabrication, offshore construction, logistics and operations.
NNPC said the development would further strengthen local content through opportunities for indigenous contractors and suppliers, technology transfer, skills development and expansion of Nigeria’s marine and engineering capabilities.
The Bonga Southwest/Aparo project has been under development for years, making the latest agreements an important step toward unlocking a major deepwater asset.
With the contractual framework now advanced, attention will shift to completing the remaining technical, commercial and regulatory requirements required to reach FID.
The Federal Government and NNPC are expected to continue working with the project partners to ensure that the development proceeds safely and efficiently.
The project is ultimately expected to strengthen Nigeria’s position as a destination for deepwater energy investment while supporting efforts to increase domestic oil and gas production.
