The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in Oil Mining Lease (OML) 118 have taken a major step towards the development of the Bonga Southwest/Aparo (BSWAp) deepwater oil and gas project with the execution of addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA).
The agreements were signed by NNPC Ltd and the project’s contractor parties, including Shell Nigeria Exploration and Production Company Ltd (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Ltd, and Nigerian Agip Exploration Ltd (NAE).
The development brings BSWAp closer to Final Investment Decision (FID) and is expected to pave the way for further activities required to advance one of Nigeria’s most significant deepwater oil and gas projects.
The agreements give effect to the fiscal and commercial terms approved by the Federal Government for the development of BSWAp. The terms were enabled by the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order of 2026, signed by President Bola Ahmed Tinubu.
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The fiscal incentives are designed to improve the commercial attractiveness of deepwater projects and encourage investment in Nigeria’s offshore oil and gas resources.
NNPC Ltd said the implementation of the approved framework demonstrates the government’s commitment to creating a competitive investment environment for deepwater developments while unlocking new opportunities across the country’s oil and gas value chain.
BSWAp is considered one of Nigeria’s largest undeveloped deepwater projects, with potential investment estimated at between $15 billion and $21 billion.
At peak production, the project is expected to deliver approximately 175,000 barrels of oil per day (bopd), alongside about 140 million standard cubic feet of gas per day (mmscfd).
The scale of the project means that its development could have significant implications for Nigeria’s oil and gas production, government revenues and local economic activity.
Beyond production, the project is expected to create opportunities for Nigerian companies involved in engineering, procurement, fabrication, logistics, marine services, construction, professional services and other segments of the oil and gas supply chain.
NNPC Ltd has also completed the Pre-FEED phase of the project, marking another important milestone in the development process.
The company has further selected the contractor for the Floating Production Storage and Offloading (FPSO) facility that will support production from the BSWAp development. The selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
The progress on BSWAp comes amid renewed efforts by the Federal Government and industry stakeholders to unlock investment in Nigeria’s deepwater sector, where high development costs and commercial uncertainties have historically affected the pace of major projects.
The execution of the PSC and DSA addenda is therefore expected to provide greater clarity around the commercial framework for BSWAp and support the project’s transition towards FID.
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NNPC Ltd said the progress recorded on the project underscores the importance of collaboration between the government, regulators, the national oil company and international oil and gas partners.
The company expressed appreciation to the Federal Government, regulators and contractor parties for their cooperation in advancing the project.
NNPC Ltd said it remains committed to ensuring that BSWAp is developed safely, competitively and responsibly while maximising the project’s long-term economic value to Nigeria.
The company said the development of projects such as BSWAp would help strengthen Nigeria’s position as a destination for deepwater investment and contribute to the country’s broader energy and economic objectives.
