The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in the OML 118 joint venture have signed key agreements to advance the development of the Bonga Southwest/Aparo (BSWAp) deepwater project towards Final Investment Decision (FID).
The agreements, executed on Monday, include the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).
The signatories include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
According to NNPC, the agreements give effect to fiscal and commercial terms approved by the Federal Government for the development of BSWAp and are expected to strengthen Nigeria’s position as a competitive destination for large-scale deepwater investments.
The development 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 administration’s reforms aimed at attracting investment and improving the competitiveness of Nigeria’s deepwater petroleum sector.
NNPC said the latest agreements demonstrate how the government’s policy reforms are being translated into concrete investment and project development.
BSWAp is projected to become one of Nigeria’s largest deepwater oil and gas developments, with estimated investment potential of between $15 billion and $21 billion over the life of the project.
The project is expected to reach peak production of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
Beyond increasing national oil and gas production, the development is expected to generate additional government revenues and foreign exchange earnings while creating opportunities for Nigerian businesses and workers.
Commenting on the milestone, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the agreement showed the impact of the Federal Government’s reforms on investment in the sector.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
He added that the project would demonstrate Nigeria’s ability to provide a competitive fiscal framework and a clear pathway for sustainable investment in the 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,” he said.
Meanwhile, the project’s Pre-Front End Engineering Design (Pre-FEED) phase has been completed, paving the way for the next stage of technical development.
The project partners said the completion of Pre-FEED had helped to further define the technical and commercial scope of BSWAp and position it for progression into the Front End Engineering Design (FEED) phase, subject to the necessary approvals and governance processes.
A preferred contractor has also been identified for the project’s Floating Production Storage and Offloading (FPSO) facility following a competitive selection process.
The selection remains subject to partner, regulatory, assurance and governance requirements. Any eventual Engineering, Procurement, Construction and Installation (EPCI) contract for the FPSO will similarly require the completion of all relevant approvals.
Once completed and operational, BSWAp is expected to become a major new deepwater production hub, supporting Nigeria’s efforts to increase and sustain crude oil and gas output.
The project is also expected to expand opportunities for indigenous companies through contracts in engineering, fabrication, marine services, offshore construction, logistics and other areas.
NNPC said the development could further strengthen Nigerian content through local fabrication, engineering and marine capabilities, technology transfer and skills development.
The company said the latest milestone reflects collaboration between the Federal Government, NNPC, regulatory authorities and the OML 118 contractor parties as efforts continue to move the project towards FID.
