NNPC, Partners Sign Bonga Southwest Deals, Pave Way for $21bn Deepwater Project

• NNPC and OML 118 partners have signed agreements to advance the Bonga South-West/Aparo project towards Final Investment Decision.

• The deepwater project could attract up to $21bn in investment and reach peak production of 175,000 barrels of oil per day.

• The partners have completed Pre-FEED and selected a preferred FPSO contractor, subject to regulatory and partner approvals.

August 24, () — The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractors to the OML 118 licence have signed key agreements to advance the Bonga South-West/Aparo (BSWA) project towards Final Investment Decision (FID).

The agreements comprise an addendum to the OML 118 Production Sharing Contract (PSC) and an addendum to the Dispute Settlement Agreement (DSA), executed by NNPC, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).

The agreements give effect to fiscal and commercial terms approved by the Federal Government for the development of the project.

The milestone is expected to unlock between $15bn and $21bn in investment over the life of the project, potentially making Bonga South-West/Aparo one of Nigeria’s largest new deepwater developments.

Project targets 175,000 barrels per day

BSWA is projected to reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.

The development is expected to increase Nigeria’s oil and gas output while generating additional government revenue, foreign exchange earnings and opportunities for Nigerian businesses.

NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the agreements demonstrated the impact of the Federal Government’s efforts to make Nigeria’s deepwater sector more attractive to investors.

“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 said NNPC would continue working with the government, partners and other stakeholders to ensure the project delivers value to the federation.

Bonga project moves towards FEED

The contractor parties have also completed the project’s Pre-Front End Engineering Design (Pre-FEED) phase, providing a basis for further technical and commercial work ahead of FID.

Following a competitive selection process, a preferred Floating Production Storage and Offloading (FPSO) contractor has also been identified.

The selection remains subject to partner, regulatory, assurance and governance approvals.

Once the required approvals are obtained, the preferred contractor will support the progression of the FPSO concept into the Front End Engineering Design (FEED) phase.

Any eventual Engineering, Procurement, Construction and Installation (EPCI) award will also remain subject to applicable approvals.

Nigeria expects wider economic benefits

Beyond production, the project is expected to create opportunities for Nigerian contractors and suppliers across engineering, fabrication, offshore construction, logistics and operations.

The development could also deepen Nigerian content through local contracting, fabrication and marine services while supporting technology transfer and skills development.

The agreements follow President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which forms part of the Federal Government’s efforts to improve the competitiveness of deepwater projects.

For Nigeria, the advancement of Bonga South-West/Aparo provides an opportunity to attract billions of dollars in long-term capital while expanding production from the country’s deepwater resources.