The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties have signed two key agreements aimed at advancing the Bonga Southwest/Aparo deepwater project towards a Final Investment Decision (FID).

The agreements were executed with Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE), the contractor parties under OML 118.

NNPC said the agreements comprise an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA). The company disclosed the development on Monday.

According to NNPC chief corporate communications officer, Andy Odeh, the execution of the agreements gives effect to fiscal and commercial terms approved by the federal government for the development of Bonga Southwest/Aparo (BSWAp).

Odeh said the development also reinforces Nigeria’s efforts to provide a competitive, stable and attractive environment capable of supporting large-scale deepwater investments.

The agreements followed President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The order forms part of the federal government’s continuing reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting new investments.

NNPC said the BSWAp PSC and DSA Addenda demonstrate how the reforms are being translated into actual investment and project development.

BSWAp is projected to rank among Nigeria’s largest deepwater developments. Over the lifetime of the project, it has the potential to attract between US$15 billion and US$21 billion in investment, while peak production is expected to reach about 175 kbopd of oil and 140 mmscfd of gas.

The project is expected to provide broad economic benefits, including higher oil and gas production, increased government revenues, stronger foreign exchange earnings, local content development, employment opportunities and expanded business opportunities for Nigerian companies.

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 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 OML 118 Contractor Parties also announced that the Pre-Front End Engineering Design (Pre-FEED) phase of the project had been successfully completed.

The completion represents a significant step in developing the technical and commercial scope of BSWAp and positions the project to move into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.

A preferred contractor for the project’s Floating Production Storage and Offloading (FPSO) facility has also been identified following a competitive selection process. However, the selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes.

The preferred selection creates a basis for advancing the FPSO concept into FEED and carrying out additional engineering and commercial work needed to mature the project towards FID.

NNPC noted that any eventual award of the Engineering, Procurement, Construction and Installation (EPCI) contract for the FPSO will remain subject to the completion of all applicable approvals and requirements.

When operational, BSWAp is expected to emerge as 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 sustainably increase oil and gas output in the coming years.

The project is also expected to generate significant benefits through billions of dollars in investment, greater participation by Nigerian contractors and suppliers, and direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations.

In addition, BSWAp is expected to strengthen Nigerian content by expanding contracting opportunities for indigenous companies, improving local fabrication, marine and engineering capabilities, promoting technology transfer and skills development, and creating long-term value throughout the wider Nigerian economy.

The latest milestone reflects collaboration between NNPC Ltd, the federal government, relevant regulatory agencies and the OML 118 Contractor Parties.

It also reinforces Nigeria’s position as a competitive destination for deepwater investment.

NNPC Ltd reaffirmed its commitment to working with stakeholders to advance the BSWA project safely, competitively and responsibly while maximising value for Nigeria and the Nigerian people.

Source: leadership.ng