Bonga South-West Aparo project, BSWAp, is expected to be one of Nigeria’s largest deepwater developments, with the potential to attract between $15 billion and $21 billion in investment over the life of the project and achieve peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The Nigerian National Petroleum Company Limited, NNPC Ltd, disclosed this in a statement by its spokesperson Andy Odey, on Monday.
The Company expressed belief that the development is expected to significantly boost Nigeria’s economy through increased oil and gas production, government revenues, foreign exchange earnings, local content development, employment and expanded opportunities for Nigerian businesses.
NNPC Ltd also announced that it executed the Addendum to the OML 118 Production Sharing Contract, PSC, and the Addendum to the Dispute Settlement Agreement, DSA, with the OML 118 Contractor Parties, Shell Nigeria Exploration and Production Company Limited, SNEPCo, Esso Exploration and Production Nigeria, Deepwater, Limited, and Nigerian Agip Exploration Limited, NAE.
The contract marks a major milestone in advancing the deepwater Bonga South-West/Aparo project towards Final Investment Decision, FID.
According to the statement, the execution gives effect to the fiscal and commercial terms approved by the Federal Government to support the development of BSWAp, reinforcing Nigeria’s commitment to creating a competitive, stable and attractive environment for large-scale deepwater investment.
The statement noted that the milestone follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives, Tax Remission, Order, 2026, a key component of the Federal Government’s ongoing reforms to enhance the competitiveness of Nigeria’s deepwater sector and unlock new investment.
The BSWAp PSC and DSA Addenda, he noted, demonstrate the practical impact of these reforms in translating policy into investment and project development.
Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment.
“This is about unlocking a major deepwater project and demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its energy sector.
“NNPC Ltd will continue to work closely with the Federal Government, our partners and other stakeholders to ensure that this project delivers maximum value for the Federation and the Nigerian people,” he said.
The Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design, Pre-FEED, phase, an important step in maturing the technical and commercial scope of the development and positioning the project to progress into the Front End Engineering Design, FEED, phase, subject to applicable partner, assurance and governance requirements.
Following a competitive selection process, a bidder has been identified as the preferred Floating Production Storage and Offloading, FPSO, contractor for the project, subject to completion of applicable partner, regulatory, assurance and governance processes.
The selection provides a basis for advancing the FPSO concept into FEED and undertaking further engineering and commercial work required to mature the project towards FID.
Any eventual award of the FPSO Engineering, Procurement, Construction and Installation, EPCI, contract remains subject to the completion of all applicable approvals and requirements.
Once operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing materially to national oil production and supporting the country’s ambition to sustainably grow oil and gas output in the coming years.
The project is expected to deliver substantial benefits to Nigeria, including billions of dollars in investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.
BSWAp is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhance local fabrication, marine and engineering capabilities, facilitate technology transfer and skills development, and create lasting value across the wider Nigerian economy.
The milestone reflects strong collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties, and reinforces Nigeria’s position as a competitive destination for deepwater investment.
NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWAp project safely, competitively and responsibly, while maximising value for Nigeria and the Nigerian people.
