Nigeria Advances $21 Billion Deepwater Oil Project with Shell toward Final Investment Decision
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
Nigeria’s NNPC Issues Fresh Tenders for Cawthorne and Bonny Light Crude Cargoes
Nigeria’s state oil firm, NNPC Limited, has issued new export tenders to market a cargo of its newest crude grade, Cawthorne, alongside a cargo of flagship Bonny Light for September loading. The commercial offering was revealed according to tender documents, marking NNPC Trading Limited’s continued trial marketing push to establish firm price discovery benchmarks for the newly introduced light grade. Cawthorne is a light, sweet crude stream boasting an API gravity of 36.4, giving it a refining profile remarkably similar to Bonny Light with high yields of valuable gasoline and middle distillates. The grade is produced from Oil Mining Lease 18 and adjacent Eastern Niger Delta fields, stored and evacuated via the offshore Cawthorne Floating Storage and Offloading vessel, which holds 2.2 million barrels capacity. The rollout follows recent additions like Utapate, Nembe, and Obodo, reflecting Nigeria’s strategic drive to expand its crude export portfolio, diversify global market offerings, and raise national output toward 1.7 million bpd. These operational efforts aim to consolidate national production recovery following years of severe output curtailments triggered by widespread crude theft, pipeline vandalism, and chronic field underinvestment across the Niger Delta region.
Nigeria State Oil Company Sees Monthly Profit Surge 16% to N535 Billion
The Nigerian National Petroleum Company Limited (NNPCL) recorded a 15.8% surge in net profit to N535 billion for June 2026, marking its highest monthly earnings in 10 months. According to the state oil firm’s June Monthly Financial and Operations Report, total revenue reached N4.39 trillion during the month as crude sales volumes rebounded sharply. The earnings mark a strong recovery from a low of N136 billion in February 2026, propelled by crude oil sales rebounding to 27.23 million barrels. The financial turnaround boosted cumulative statutory remittances to the Nigerian government to N6.29 trillion for the first half of 2026. However, average daily crude and condensate output dropped slightly to 1.72 million barrels per day due to localized operational disruptions and field maintenance. Meanwhile, natural gas production increased modestly to 7,841 million standard cubic feet per day as strategic gas pipeline infrastructure projects approached completion.
