The Nigerian National Petroleum Company Limited (NNPC Ltd) and its OML 118 contractor partners—Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE)—have executed key addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA). This execution marks a major step forward in advancing the Bonga Southwest/Aparo (BSWAp) deepwater development toward a Final Investment Decision (FID).
The agreement operationalizes the commercial and fiscal terms recently approved by the Federal Government to establish a stable, competitive environment for large-scale offshore energy projects. This progress directly follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, demonstrating how targeted policy reforms are actively translating into tangible, multi-billion-dollar investments.
Positioned to become one of Nigeria’s largest deepwater assets, BSWAp is projected to attract between $15 billion and $21 billion in total investment over its lifecycle. At peak capacity, the field is expected to deliver approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day, materially boosting national production, foreign exchange earnings, and government revenues.
Highlighting the importance of the milestone, NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, noted that the addenda prove the effectiveness of current reforms in unlocking key energy assets. He emphasized that the deal establishes a clear, competitive pathway for sustainable growth, reaffirming NNPC Ltd’s commitment to collaborating with all partners to secure maximum value for the Federation.
On the technical front, the contractor parties confirmed the successful completion of the Pre-Front End Engineering Design (Pre-FEED) phase, positioning the venture to advance into the Front End Engineering Design (FEED) stage. Additionally, a preferred contractor has been identified through a competitive tender for the Floating Production Storage and Offloading (FPSO) facility, establishing the groundwork for FEED maturation ahead of the final EPCI contract award.
Beyond resource extraction, the project will serve as a major economic catalyst by creating substantial direct and indirect jobs across engineering, logistics, fabrication, and marine operations. It will also significantly expand opportunities for indigenous businesses, driving local capacity building, skills development, and technology transfer across the domestic supply chain.
Ultimately, this development underscores the strong alignment among NNPC Ltd, regulatory authorities, and international joint-venture partners. NNPC Ltd reaffirmed its dedication to advancing BSWAp safely and responsibly, cementing Nigeria’s standing as an attractive, globally competitive destination for deepwater energy development.