The Nigerian National Petroleum Company Limited (NNPC) has secured presidential approval for a targeted fiscal incentive package to unlock the long-awaited Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.
The approval, granted by President Bola Ahmed Tinubu on March 10, marks a major milestone in efforts to revitalize Nigeria’s deepwater sector.
The project, which has faced nearly two decades of delays, is estimated to attract approximately $20 billion in Foreign Direct Investment over its lifecycle.
The fiscal package approved by the President includes an enhanced Production Tax Credit and a resolution to a long-standing 2021 dispute settlement agreement. These measures are designed to create a competitive framework that balances national value with attractive investor returns.
The BSWA project represents the first FID on a Nigerian deepwater Production Sharing Contract asset since 2008. Upon completion, the field is expected to deliver 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas per day.
This development is projected to create over 5,000 direct and indirect jobs, while also revitalizing local fabrication yards that have been underutilized for years. Ultimately, the project is positioned to enhance Nigeria’s energy security, boost foreign exchange inflows, and strengthen the country’s standing as a premier destination for offshore energy investment.
This approval follows months of intensive negotiations between the NNPC, the Nigeria Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and leadership from Shell, the project’s operator.
Engr. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC Limited, described the milestone as a testament to partnership, persistence, and policy clarity, noting that the administration’s reform-driven approach has successfully broken the long-standing logjam surrounding the asset.
With the fiscal framework now secured, NNPC and its partners are expected to progress toward the final FID, which will trigger the formal commitment of capital required to transform the Bonga Southwest Aparo field into a functioning offshore production hub.