…OML 118 deals signed
…As Bonga Southwest/Aparo moves towards Final Investment Decision
…Project targets 175,000bpd oil, 140mmscf/d gas at peak production
The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties, comprising Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE), have signed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA), marking a major step towards the Final Investment Decision (FID) on the deepwater Bonga Southwest/Aparo (BWSAp) project.
The agreements give effect to the fiscal and commercial terms approved by the Federal Government for the development of BWSAp, while strengthening Nigeria’s position as a competitive, stable and attractive 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, a key element of the Federal Government’s continuing reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and drawing fresh investment into the industry.
The BSWA PSC and DSA Addenda provide a practical demonstration of how the reforms are being translated into investment decisions and project development, creating a clearer framework for the advancement of major deepwater assets.
BWSAp is expected to rank among Nigeria’s largest deepwater developments, with the potential to attract between US$15 billion and US$21 billion in investment over the life of the project. It is also projected to reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The development is expected to make a significant contribution to Nigeria’s economy through higher oil and gas production, increased government revenues, foreign exchange earnings, local content development, employment creation and wider opportunities for Nigerian businesses.
Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the BSWAp PSC and DSA Addenda showed the impact of the Tinubu administration’s reforms in converting policy measures into investment and project development.
He said: “The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment. 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 successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, another significant step in defining and maturing the technical and commercial scope of the development.
Completion of the Pre-FEED phase positions BWSAp to move into the Front End Engineering Design (FEED) stage, subject to the applicable partner, assurance and governance requirements.
Following a competitive selection process, a bidder has also been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the BSWAp project. The selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
The preferred contractor’s selection provides a basis for taking the FPSO concept into FEED and carrying out the additional engineering and commercial work needed to advance the development towards FID. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains conditional on the completion of all applicable approvals and requirements.
When operational, BWSAp is expected to become one of Nigeria’s most significant new deepwater production hubs, making a substantial contribution to national oil production and supporting the country’s ambition to grow oil and gas output sustainably over the coming years.
The project is also expected to generate substantial economic benefits through billions of dollars in investment, greater participation by Nigerian contractors and suppliers, and significant direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations.
BWSAp is expected to deepen Nigerian content through increased contracting opportunities for indigenous companies, while expanding local fabrication, marine and engineering capabilities. The project is also expected to facilitate technology transfer and skills development, creating long-term value across the wider Nigerian economy.
The milestone reflects close collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties, further strengthening Nigeria’s position as a competitive destination for deepwater investment.
NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWAp project safely, competitively and responsibly, while securing maximum value for Nigeria and the Nigerian people.