By Suleiman Aremu | Solaremnews
The Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties to Oil Mining Lease (OML) 118 have signed key contractual addenda to advance the Bonga Southwest/Aparo (BSWAp) deepwater project towards Final Investment Decision (FID).
The landmark agreement was reached on Monday by NNPC Ltd, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE), with the parties executing the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).
The signing gives effect to fiscal and commercial terms approved by the Federal Government to facilitate the development of BSWAp, while reinforcing Nigeria’s efforts to create a competitive and stable environment capable of attracting large-scale investment in the deepwater oil and gas sector.
The milestone follows the approval by President Bola Ahmed Tinubu of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which forms part of the Federal Government’s reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and unlocking fresh investments.
The execution of the PSC and DSA addenda is therefore seen as a practical demonstration of how the government’s fiscal reforms are being translated into concrete investment and project development opportunities.
BSWAp is projected to become one of Nigeria’s largest deepwater oil and gas developments, with the potential to attract between $15 billion and $21 billion in investment over the life of the project.
At peak production, the project is expected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The development is expected to make significant contributions to the Nigerian economy through increased oil and gas production, higher government revenues, foreign exchange earnings, local content development, employment generation and expanded opportunities for Nigerian businesses.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the agreements demonstrated the effectiveness of President Tinubu’s reforms in converting policy initiatives into actual investment.
Ojulari said the development was about unlocking a major deepwater project and demonstrating that Nigeria has a competitive fiscal framework as well as a clear pathway for sustainable investment in its energy sector.
He added that NNPC Ltd would continue to work with the Federal Government, its partners and other stakeholders to ensure that the project delivers maximum value to the Federation and Nigerians.
Meanwhile, the contractor parties announced the successful completion of the Pre-Front End Engineering Design (Pre-FEED) phase of the project.
The completion of the phase represents another significant step in maturing the technical and commercial scope of BSWAp and positions the project to proceed to the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
The contractor parties also disclosed that, following a competitive selection process, a bidder had been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the project.
However, the selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
The identification of the preferred FPSO contractor is expected to provide a basis for progressing the FPSO concept into FEED and undertaking additional engineering and commercial work required to mature the project towards FID.
NNPC Ltd clarified that any eventual award of the Engineering, Procurement, Construction and Installation (EPCI) contract for the FPSO remains subject to the completion of all applicable approvals and requirements.
Once operational, BSWAp is expected to emerge as one of Nigeria’s most significant new deepwater production hubs and contribute substantially to national oil production.
The project is also expected to support the country’s ambition of sustainably increasing oil and gas output while strengthening government revenues and attracting further investment into the petroleum industry.
Beyond production and revenue generation, the project is expected to create substantial economic opportunities for Nigerian contractors, suppliers and service providers.
According to NNPC Ltd, the development could generate direct and indirect employment opportunities across several areas, including engineering, fabrication, offshore construction, logistics and operations.
The project 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 promoting skills development.
The development is expected to create a wider economic impact by stimulating activities across the oil and gas value chain and supporting the growth of Nigerian businesses involved in the supply of goods and services to the industry.
The signing of the PSC and DSA addenda reflects collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 contractor parties.
It also reinforces Nigeria’s renewed efforts to position its deepwater petroleum sector as a competitive destination for international and domestic investment.
NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the Bonga Southwest/Aparo project safely, competitively and responsibly, while maximising its value to Nigeria and the Nigerian people.
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