NNPC, OML 118 Contractors Sign Addenda to Advance Bonga Southwest/Aparo Project

The Nigerian National Petroleum Company Limited (NNPC Ltd) and 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) — have executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).

The agreements mark a major milestone in advancing the deepwater Bonga Southwest/Aparo (BSWAp) project towards Final Investment Decision (FID).
The execution gives effect to the fiscal and commercial terms approved by the Federal Government to support the development of BSWAp. It also reinforces Nigeria’s commitment to providing a competitive, stable and attractive environment for large-scale deepwater investment.
The milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which forms part of the Federal Government’s ongoing reforms aimed at improving the competitiveness of Nigeria’s deepwater sector and attracting new investments.
The BSWAp PSC and DSA Addenda demonstrate the practical impact of these reforms by translating policy into investment and project development.
BSWAp is expected to become one of Nigeria’s largest deepwater developments, with the potential to attract between US$15 billion and US$21 billion in investment over the life of the project. It is also projected to achieve peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The development is expected to contribute significantly to Nigeria’s economy through increased oil and gas production, government revenue, foreign exchange earnings, local content development, employment and expanded opportunities for Nigerian businesses.
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.
He said the project represents an opportunity to unlock a major deepwater development while demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in the energy sector.
Ojulari added that NNPC Ltd would continue working closely with the Federal Government, partners and other stakeholders to ensure that the project delivers maximum value for the Federation and the Nigerian people.
The Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase. This marks an important step in maturing the technical and commercial scope of the development and positions 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 also been identified as the preferred Floating Production Storage and Offloading (FPSO) contractor for the BSWAp project, subject to the completion of applicable partner, regulatory, assurance and governance processes.
The selection provides a basis for advancing the FPSO concept into FEED and carrying out 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 all applicable approvals and requirements.
Once operational, BSWAp is expected to become one of Nigeria’s significant new deepwater production hubs, contributing to national oil production and supporting the country’s ambition to sustainably increase oil and gas output in the coming years.
The project is also expected to deliver substantial benefits through billions of dollars in investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities in engineering, fabrication, offshore construction, logistics and operations.
BSWAp is expected to further strengthen Nigerian content by creating more contracting opportunities for indigenous companies, enhancing local fabrication, marine and engineering capabilities, facilitating technology transfer and skills development, and creating lasting value across the wider Nigerian economy.
The milestone reflects the collaboration among NNPC Ltd, the Federal Government, relevant regulatory agencies and the OML 118 Contractor Parties, while reinforcing 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.