By: Goodluck E.Adubazi, Abuja.
The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractors under the OML 118 Production Sharing Contract (PSC) have signed key agreements expected to move the Bonga Southwest/Aparo (BSWAp) deepwater project closer to Final Investment Decision (FID).
The agreements, comprising the Addendum to the OML 118 PSC and the Addendum to the Dispute Settlement Agreement (DSA), were executed by 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).
The milestone is expected to pave the way for the development of what could become one of Nigeria’s largest deepwater oil and gas projects, with projected investment of between $15 billion and $21 billion over the life of the project.
The BSWAp development is expected to achieve peak production of about 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).
The execution of the agreements gives effect to fiscal and commercial terms approved by the Federal Government for the project and is seen as a major step towards creating a more competitive and stable environment for deepwater investment in Nigeria.
The development follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is part of the Federal Government’s reforms aimed at improving the competitiveness of the deepwater sector and attracting fresh investments.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution demonstrated the impact of the Tinubu administration’s reforms in converting policy initiatives into actual investments.
“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 project’s Contractor Parties also announced the successful completion of the Pre-Front End Engineering Design (Pre-FEED) phase, describing it as an important step in maturing the technical and commercial scope of the development.
The project is now positioned to progress into the Front End Engineering Design (FEED) phase, subject to applicable partner, assurance and governance requirements.
In another major development, a bidder has been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor following a competitive selection process.
The selection, however, remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
The preferred bidder is expected to provide a basis for advancing the FPSO concept into FEED and undertaking further engineering and commercial work towards FID. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will remain subject to all required approvals.
When operational, the BSWAp project is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing substantially to national oil production and supporting the country’s efforts to sustainably increase oil and gas output.
The project is also expected to boost government revenues and foreign exchange earnings while creating employment and expanding opportunities for Nigerian contractors, suppliers and businesses.
Beyond production, the development is expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, local fabrication, marine and engineering services, technology transfer and skills development.
The project is expected to generate direct and indirect employment opportunities in areas including engineering, fabrication, offshore construction, logistics and operations.
The execution of the PSC and DSA addenda reflects continued collaboration among NNPC Ltd, the Federal Government, regulatory agencies and the OML 118 Contractor Parties to unlock the project.
NNPC Ltd said it remained committed to working with stakeholders to advance the BSWAp project safely, competitively and responsibly while maximising value for Nigeria and its citizens.
