By Obiabin Onukwugha
The Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties to Oil Mining Lease (OML) 118 have signed key agreements that could move the long-awaited Bonga Southwest/Aparo (BSWAp) deepwater project closer to a Final Investment Decision (FID).
The agreements, which was signed on Monday, include the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).
The contractor parties are Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
According to NNPC Ltd, the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp, while reinforcing Nigeria’s efforts to make its deepwater sector more competitive and attractive to investors.
A statement by NNPC Limited Chief Corporate Communications Officer, Andy Odeh, the revealed that the development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
NNPCL described the latest agreements as a practical demonstration of how the Federal Government’s ongoing reforms are being translated into investment and project development.
NNPC Ltd Group Chief Executive Officer, Engr. Bashir Ojulari, said the milestone showed that the reforms were beginning to unlock major investments in Nigeria’s deepwater oil and gas industry. “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 will demonstrate Nigeria’s readiness 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.
BSWAp is projected to become one of Nigeria’s largest deepwater developments, with estimated investment of between $15 billion and $21 billion over the life of the project. At peak production, the project is expected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
Beyond increasing national oil and gas output, the development is expected to generate government revenues and foreign exchange earnings, create jobs and expand opportunities for Nigerian contractors, suppliers and service providers.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase.
The completion marks another step in defining the project’s technical and commercial scope and positions BSWAp for progression into the Front End Engineering Design (FEED) phase, subject to the required partner, assurance and governance processes.
A preferred contractor has also been identified following a competitive selection process for the project’s Floating Production Storage and Offloading (FPSO) facility.
The selection, however, remains subject to the completion of applicable partner, regulatory, assurance and governance requirements.
NNPC Ltd said the preferred FPSO contractor would provide a basis for advancing the FPSO concept into FEED and carrying out further engineering and commercial work needed to mature the project towards FID.
It stressed that any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract would remain subject to all required approvals and processes.
When operational, BSWAp is expected to become a major new deepwater production hub, contributing significantly to Nigeria’s oil production and supporting efforts to sustainably increase national oil and gas output.
The project is also expected to deepen Nigerian content through greater participation by indigenous companies in engineering, fabrication, marine services, logistics and offshore construction.
It could further support technology transfer, skills development and the expansion of local engineering and fabrication capabilities.
The signing of the agreements brings together years of technical, commercial and policy work and reflects the collaboration between NNPC Ltd, the Federal Government, regulatory agencies and the OML 118 contractor parties.
NNPC Ltd said it remained committed to advancing BSWAp safely, competitively and responsibly, while ensuring that the project delivers lasting value to Nigeria and its people.
