The Nigerian National Petroleum Company (NNPC) Limited and the contractor parties to Oil Mining Lease (OML) 118 have signed agreements aimed at advancing the $15 billion Bonga South West/Aparo (BSWAp) deepwater project towards a Final Investment Decision (FID).
Gatekeepers News reports that the agreements include an addendum to the OML 118 Production Sharing Contract (PSC) and an addendum to the Dispute Settlement Agreement (DSA).
The contractor parties comprise Shell Nigeria Exploration and Production Company (SNEPCo) Limited, Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration (NAE) Limited.
According to a statement issued by NNPC spokesperson, Andy Adeh, the addenda were executed on Monday.
NNPC described the development as a major milestone in efforts to advance BSWAp, following President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The company said the agreements give effect to the fiscal and commercial terms approved by the Federal Government to support the project’s development.
NNPC said the move also reinforces Nigeria’s commitment to creating a stable, competitive and attractive environment for large-scale deepwater investments.
“The BSWA PSC and DSA Addenda demonstrate the practical impact of these reforms in translating policy into investment and project development,” NNPC said.
“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 company said the project would contribute to the Nigerian economy through increased oil and gas production, higher government revenues, foreign exchange earnings, local content development, employment and expanded opportunities for Nigerian businesses.
Contractors complete pre-FEED phase
NNPC also announced that the contractor parties had successfully completed the project’s pre-Front End Engineering Design (Pre-FEED) phase.
The company said the milestone would help mature the project’s technical and commercial scope and position BSWAp to move into the FEED phase, subject to the required partner, assurance and governance processes.
“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,” NNPC said.
It added that the selection would provide a basis for progressing the FPSO concept into FEED while further engineering and commercial work is undertaken towards FID.
However, NNPC stressed that 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, the company said BSWAp is expected to become one of Nigeria’s major new deepwater production hubs and contribute significantly to national oil output.
“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,” NNPC said.
Ojulari: Deal shows impact of Tinubu’s reforms
Speaking on the development, Bayo Ojulari, Group Chief Executive Officer of NNPC, said the execution of the BSWAp PSC and DSA addenda demonstrated the impact of the Tinubu administration’s reforms in attracting investment into Nigeria’s energy sector.
“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,” Ojulari said.
He added that NNPC would 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.”
