Bonga South-West Aparo Project Advances as NNPC, Partners Execute PSC, DSA Addenda
• Project Expected to Attract $15bn–$21bn Investment, Deliver 175,000 Barrels of Oil Daily at Peak
The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties have signed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA), marking a major step towards the development of the Bonga South-West Aparo (BSWAp) deepwater project.
The contractor parties comprise Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).
The signing gives effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp and moves the project closer to Final Investment Decision (FID).
The milestone is also coming on the heels of President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, aimed at improving the competitiveness of Nigeria’s deepwater oil and gas sector and attracting fresh investment.
BSWAp is expected to rank among Nigeria’s largest deepwater developments, with potential investment estimated at between US$15 billion and US$21 billion over the life of the project.
At peak production, the project is projected to produce approximately 175,000 barrels of oil per day (bopd) and 140 million standard cubic feet of gas per day (mmscfd).
The development is expected to boost Nigeria’s oil and gas production, government revenues and foreign exchange earnings, while creating opportunities for local contractors, suppliers and workers.
Speaking on the development, Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the PSC and DSA Addenda demonstrated the impact of the Federal Government’s reforms in translating policy into investment.
According to him, the project would unlock a major deepwater development while demonstrating that Nigeria has a competitive fiscal framework capable of supporting sustainable investment in the energy sector.
Ojulari said NNPC Ltd would continue to work with the Federal Government, partners and other stakeholders to ensure that the project delivers maximum value to Nigeria and its people.
Meanwhile, the contractor parties announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase.
The completion marks another major milestone in defining the technical and commercial scope of the development and positions the project to advance into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
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 remains subject to applicable partner, regulatory, assurance and governance processes.
The preferred selection will enable the FPSO concept to progress into FEED and support further engineering and commercial activities required to mature the project towards FID.
Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to the completion of all required approvals and processes.
When operational, BSWAp is expected to become one of Nigeria’s major new deepwater production hubs and contribute significantly to national oil output.
The project is also expected to generate direct and indirect employment across engineering, fabrication, offshore construction, logistics and operations, while expanding opportunities for Nigerian businesses.
It is further projected to strengthen Nigerian content through increased participation of indigenous companies, local fabrication, marine and engineering services, technology transfer and skills development.
NNPC Ltd said the latest milestone reflects strong collaboration between the company, the Federal Government, regulatory agencies and the OML 118 Contractor Parties.
The company reaffirmed its commitment to advancing the BSWAp project safely, competitively and responsibly while maximising value for the Nigerian people.
