KEY POINTS
- Tinubu approved fiscal incentives to unlock the $20 billion Bonga Southwest Aparo deepwater oil project.
- The project is expected to produce 150,000 barrels of crude oil and 140 million cubic feet of gas daily when completed.
- It will mark Nigeria’s first deepwater Final Investment Decision since 2008, signaling renewed investor confidence in the sector.
President Bola Ahmed Tinubu has approved a targeted fiscal incentive designed to unlock the long-delayed Bonga Southwest Aparo (BSWA) deepwater oil project, a strategic development expected to attract approximately $20 billion in Foreign Direct Investment (FDI) into Nigeria’s energy sector.
The approval marks a significant milestone for the country’s oil and gas industry, as it paves the way for the Final Investment Decision (FID) on the project after years of delays caused by regulatory, fiscal, and commercial uncertainties.
The project is widely regarded as one of Nigeria’s most important offshore developments and is expected to boost crude oil production while reinforcing investor confidence in the country’s petroleum industry.
Months of Negotiations Lead to Breakthrough
The presidential approval followed months of intensive technical and commercial negotiations among key stakeholders in Nigeria’s energy sector. These discussions involved NNPC Limited, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and Shell Chief Executive Officer Wael Sawan.
The breakthrough was reached during a courtesy visit by Sawan to the President, where Tinubu directed relevant authorities to expedite all necessary approvals and policy frameworks required to move the project toward its Final Investment Decision.
Industry observers say the directive demonstrates the administration’s determination to remove long-standing investment bottlenecks and accelerate large-scale energy projects.
Once completed, the Bonga Southwest Aparo project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
The development is expected to significantly strengthen Nigeria’s offshore production capacity and contribute to the country’s broader strategy of maximising value from its hydrocarbon resources while increasing gas output for domestic and export markets.
The project also forms part of efforts to revive Nigeria’s deepwater oil sector, which has experienced a slowdown in major investments over the past decade.
