KEY POINTS
- NNPC, Shell, Esso and Agip signed agreements to advance the Bonga South West/Aparo deepwater project.
- BSWAp could attract $15bn–$21bn and produce up to 175,000 barrels of oil daily plus 140mmscf/d of gas.
- Pre-FEED has been completed, with a preferred FPSO contractor identified as the project moves towards FEED and FID.
The Nigerian National Petroleum Company, NNPC, Limited and partners in the Oil Mining Lease (OML) 118 project have signed key agreements aimed at moving the long-awaited Bonga South West/Aparo (BSWAp) deepwater oil and gas project closer to a final investment decision (FID).
The agreements were signed by NNPC and the OML 118 contractor parties, comprising Shell Nigeria Exploration and Production Company (SNEPCo) Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration (NAE) Limited.
According to NNPC spokesperson Andy Adeh, the agreements were executed on Monday and represent a major step towards developing one of Nigeria’s most significant future offshore oil projects.
NNPC estimates that the BSWAp project could attract between $15 billion and $21 billion in investment over its lifetime.
The milestone follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
NNPC said the addenda to the OML 118 Production Sharing Contract (PSC) and the Dispute Settlement Agreement (DSA) give effect to fiscal and commercial terms approved by the Federal Government for the development of BSWAp.
The company said the agreements demonstrate the impact of recent government reforms designed to improve the investment environment and encourage large-scale capital commitments to Nigeria’s oil and gas industry.
NNPC described the development as evidence of Nigeria’s effort to create a more competitive, stable and predictable fiscal framework for deepwater investments.
The agreements are expected to provide greater clarity for the project partners as they work towards the next stages of development and eventually reach a final investment decision.
