By Abubakar Yunusa
The Nigerian National Petroleum Company Limited and partners in OML 118 have signed two agreements to advance the $15bn-$21bn Bonga Southwest/Aparo deepwater project towards Final Investment Decision.
The agreements, executed on Monday, involve NNPC Ltd, Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited, following Federal Government approval of new fiscal and commercial terms.
NNPC’s Chief Corporate Communications Officer, Andy Odeh, disclosed the development in a statement.
He said the agreements comprised an addendum to the OML 118 Production Sharing Contract and another to the Dispute Settlement Agreement.
According to him, the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the project.
The development followed President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
Odeh said the policy was part of ongoing reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting fresh investment.
The Bonga Southwest/Aparo project is expected to attract between $15bn and $21bn in investment over its lifetime.
It 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.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the agreements demonstrated the impact of the Federal Government’s reforms on 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.
He said the project would help unlock a major deepwater development and strengthen Nigeria’s position in the global energy investment market.
“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 added.
Meanwhile, the contractor parties announced the completion of the project’s Pre-Front End Engineering Design phase.
The milestone clears the way for the project to progress towards the Front End Engineering Design phase, subject to partner, assurance and governance requirements.
A preferred contractor has also been identified for the project’s Floating Production Storage and Offloading facility following a competitive selection process.
However, NNPC said any award of the Engineering, Procurement, Construction and Installation contract remained subject to regulatory, partner and other required approvals.
Once completed, the project is expected to become one of Nigeria’s major new deepwater production hubs.
The development is also expected to increase government revenue and foreign exchange earnings while creating opportunities for Nigerian contractors and suppliers.
NNPC said the project would support local fabrication, engineering, marine services, technology transfer and skills development.
The company reaffirmed its commitment to working with the Federal Government, regulators and project partners to advance the development towards FID.
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