FG Targets Fresh $21bn Investment, 175,000bpd From Bonga Southwest Project

Nigeria is targeting fresh investment of up to US$21 billion and peak oil production of about 175,000 barrels per day from the Bonga Southwest/Aparo deepwater project, following the signing of addenda to the project’s Production Sharing Contract and Dispute Settlement Agreement by NNPC Ltd and OML-118 partners, advancing development toward a Final Investment Decision.

The Nigerian National Petroleum Company Limited (NNPC Ltd), and the OML 118 Contractor Parties — Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE) —on Monday, signed two addenda to the Production Sharing Contract and Dispute Settlement Agreement for the Bonga Southwest/Aparo (BSWAp) deepwater project, a move that advances the development toward a Final Investment Decision (FID) and puts in place the fiscal and commercial terms approved by the federal government.

The execution of the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement gives effect to the fiscal and commercial terms approved by the federal government to support the development of BSWAp and it reinforces Nigeria’s commitment to creating a competitive, stable and attractive environment for large-scale deepwater investment, according to the NNPC.

BSWAp is expected to be one of Nigeria’s largest deepwater developments, with the potential to attract US$15 billion to US$21 billion in investment over the life of the project and achieve peak production of about 175 kbopd of oil and 140 mmscfd of gas. The development is expected to contribute significantly to Nigeria’s economy through increased oil and gas production, government revenues, foreign exchange earnings, local content development, employment and expanded opportunities for Nigerian businesses, the NNPC said.

It added that the agreements followed President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, an important component of the federal government’s ongoing reforms to enhance the competitiveness of Nigeria’s deepwater sector and unlock new investment.

The national oil company added that the BSWA PSC and DSA Addenda demonstrated the practical impact of these reforms in translating policy into investment and project development.

Speaking on the development, the group chief executive officer of NNPC Ltd, Engr. Bashir Bayo Ojulari said, “The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment. This is about unlocking a major deepwater project and demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its 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.”

The Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, marking an important milestone in maturing the technical and commercial scope of the development and positioning the project to progress into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.

Following a competitive selection process, a bidder has been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the BSWA project, subject to completion of applicable partner, regulatory, assurance and governance processes. The selection provides a basis for progressing the FPSO concept into FEED and for undertaking the further engineering and commercial work 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 applicable approvals and requirements.

Once operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing materially to national oil production and supporting the country’s ambition to sustainably grow oil and gas output over the coming years.

The project is expected to deliver substantial benefits to Nigeria through billions of dollars of investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.

BSWAp is also expected to strengthen Nigerian content by increasing contracting opportunities for indigenous companies, enhancing local fabrication, marine, and engineering capabilities, facilitating technology transfer and skills development, and creating lasting value across the wider Nigerian economy.

The milestone reflects the strong collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties, and reinforces Nigeria’s position as a competitive destination for deepwater investment.

NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWA project safely, competitively and responsibly, while maximising value for Nigeria and the Nigerian people.