Nigeria’s state oil firm NNPC Limited and partners Shell SNEPCo, Esso and Nigerian Agip Exploration executed Production-Sharing Contract (PSC) and Dispute Settlement Addenda (DSA) on Monday for the Bonga Southwest/Aparo project.
The milestone, announced by NNPC Group Chief Executive Officer Bashir Bayo Ojulari, moves the long-delayed deepwater development in Oil Mining Lease 118 closer to a final investment decision
The project is projected to attract $15 billion to $21 billion in investment over its life and deliver peak output of 175,000 barrels of oil per day plus 140 million standard cubic feet of gas daily.
It is expected to rank among Nigeria’s largest deepwater developments, boosting national production, government revenue, foreign exchange and local jobs.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said. “This is about unlocking a major deep-water project and demonstrating that Nigeria has a competitive fiscal framework.”
The agreements give effect to fiscal terms enabled by the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, signed by President Bola Tinubu earlier this month.
The order introduces production tax credits and a clearer framework aimed at unlocking up to $50 billion in broader deepwater investments and supporting Nigeria’s push toward higher output.
Discovered more than two decades ago, Bonga Southwest/Aparo had faced prolonged delays from fiscal uncertainty and commercial disputes.
Presidential incentives approved in March 2026 helped clear key obstacles, positioning the asset as a potential first major deepwater PSC final investment decision since 2008.
Partners have completed the pre-front-end engineering design phase and identified a preferred floating production storage and offloading contractor, subject to further approvals.
The project is now set to advance into detailed front-end engineering design, strengthening Nigeria’s appeal to international capital in a competitive global energy landscape
