L-R: MD Esso, Jagir Baxi; EVP/Country Chair, Shell Companies in Nigeria, Elohor Aiboni; GCEO NNPC Ltd, Engr. Bashir Bayo Ojulari; MD SNEPCO, Ronald Adams and MD NAE, Maurizio Pinna, shortly after executing the Addenda to the OML 118 PSC and DSA agreements towards the advancement of the Bonga South West/Aparo Project (BSWAP) at the NNPC Towers in Abuja, on Monday.
The Nigerian National Petroleum Company Limited (NNPC Ltd) and the contractor parties to OML 118 have executed the Addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) for the Bonga South-West/Aparo (BSWAp) deepwater project, advancing one of Nigeria’s most significant oil and gas developments towards Final Investment Decision (FID).
The agreements were executed by NNPC Ltd and OML 118 contractor parties comprising Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
The milestone gives effect to fiscal and commercial terms approved by the Federal Government for the development and strengthens the framework for moving the long-delayed deepwater project towards investment and execution.
BSWAp is projected to attract between US$15 billion and US$21 billion in investment over the life of the project, making it potentially one of the largest deepwater developments in Nigeria.
At peak production, the project is expected to deliver approximately 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).
The development follows the Federal Government’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is designed to improve the competitiveness of Nigeria’s deepwater petroleum sector and stimulate new investment.
For the industry, the execution of the PSC and DSA Addenda represents an important test of whether recent fiscal and regulatory reforms can translate into commercially viable projects.
NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the milestone demonstrates the effectiveness of the reforms in converting policy into investment.
According to Ojulari, the project will demonstrate that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector.
The contractor parties have also completed the project’s Pre-Front End Engineering Design (Pre-FEED) phase, allowing the technical and commercial scope to advance towards the Front End Engineering Design (FEED) stage, subject to applicable partner, assurance and governance requirements.
A preferred contractor has also been identified following a competitive process for the project’s Floating Production Storage and Offloading (FPSO) facility.
The selection remains subject to the completion of applicable partner, regulatory, assurance and governance processes. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will similarly require completion of all relevant approvals.
The progression of BSWAp comes as Nigeria seeks to increase and sustain crude oil and gas production while attracting fresh capital into a sector that has faced years of investment uncertainty.
Beyond production, the project is expected to generate significant opportunities for Nigerian contractors and suppliers across engineering, fabrication, offshore construction, marine services, logistics and operations.
It is also expected to support technology transfer, skills development and the expansion of local fabrication and engineering capabilities.
For investors, the development offers an important signal about Nigeria’s efforts to make major deepwater projects commercially viable.
For the government, the potential benefits include increased production, government revenues and foreign-exchange earnings.
For Nigerian businesses, the project could create a large ecosystem of contracts and services extending well beyond the offshore production facilities.
If the project progresses successfully through FEED, commercial maturation and FID, BSWAp could become one of Nigeria’s most important new deepwater production hubs.
The immediate focus will now be on completing the remaining technical, commercial, regulatory and governance requirements required to take the project to FID and eventually development.
EnterpriseNewsGlobal.com will continue to track the Bonga South-West/Aparo project and its implications for Nigeria’s oil and gas investment landscape.
