The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties have signed two addenda to agreements for the Bonga Southwest/Aparo (BSWAp) deepwater project, moving the major development closer to a Final Investment Decision (FID).
The agreements were signed with Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
NNPC said on Monday that it executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA) with the partners.
According to NNPC Chief Corporate Communications Officer, Andy Odeh, the agreements give effect to fiscal and commercial terms approved by the Federal Government and are designed to support the development of BSWAp.
The company said the agreements also reinforce Nigeria’s efforts to create a competitive, stable and attractive environment for large-scale deepwater investment.
The development follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which NNPC described as an important part of ongoing reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting new investment.
NNPC said the addenda demonstrate how the reforms are translating into concrete investment and project development.
BSWAp is expected to become one of Nigeria’s largest deepwater developments, with the potential to attract between $15 billion and $21 billion in investment over the life of the project. It is projected to reach peak production of about 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).
The project is expected to increase Nigeria’s oil and gas production, government revenues and foreign exchange earnings, while creating opportunities for Nigerian businesses and supporting local content and employment.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the signing demonstrated the impact of the Tinubu administration’s reforms in turning policy into investment.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment.”
Ojulari said the project would help demonstrate that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector. He added that NNPC would continue working with the Federal Government, partners and other stakeholders to maximise the project’s value to Nigeria.
Meanwhile, the contractor parties announced that the project’s Pre-Front End Engineering Design (Pre-FEED) phase had been successfully completed.
The milestone is expected to help mature the project’s technical and commercial scope and position it for the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
Following a competitive selection process, a bidder has also been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the project, subject to the completion of relevant partner, regulatory, assurance and governance processes.
The selection provides a basis for progressing the FPSO concept into FEED and carrying out further engineering and commercial work required to move towards FID. However, any final award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to all required approvals.
Once operational, BSWAp is expected to become one of Nigeria’s major new deepwater production hubs, contributing significantly to national oil production and supporting the country’s ambition to sustainably increase oil and gas output.
The project is also expected to generate billions of dollars in investment, increase opportunities for Nigerian contractors and suppliers and create direct and indirect jobs across engineering, fabrication, offshore construction, logistics and operations.
NNPC said the development would further strengthen Nigerian content through increased opportunities for indigenous companies, local fabrication, marine and engineering capabilities, technology transfer and skills development.
The company said the milestone reflects the collaboration between NNPC, the Federal Government, regulatory agencies and the OML 118 Contractor Parties, while reinforcing Nigeria’s position as a competitive destination for deepwater investment.
NNPC reaffirmed its commitment to advancing the BSWAp project safely, competitively and responsibly, while maximising value for the Federation and Nigerians.
Source: NNPC Ltd.
