NNPC’s Bonga South-West Aparo Project Attracts $21bn Investment

By Aduragbemi Omiyale

The Nigerian National Petroleum Company (NNPC) Limited has disclosed it expects between $15 billion and $21 billion in investment from the Bonga South-West Aparo project.

This investment is expected from exploration from OML 118, and it involves Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).

These firms executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA) on Monday.

The execution gives effect to the fiscal and commercial terms approved by the federal government to support the development of BSWAp, and it reinforces Nigeria’s commitment to creating a competitive, stable and attractive environment for large-scale deepwater investment.

The milestone follows the approval by President Bola Tinubu of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, an important component of the federal government’s ongoing reforms to enhance the competitiveness of Nigeria’s deepwater sector and unlock new investment. The BSWA PSC and DSA Addenda demonstrate the practical impact of these reforms in translating policy into investment and project development.

“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,” the chief executive of NNPC, Mr Bayo Ojulari, stated.

The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, marking an important milestone 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 BSWA project, subject to completion of applicable partner, regulatory, assurance and governance processes.

The selection provides a basis for progressing the FPSO concept into FEED and for undertaking the 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 over the coming years.

The project is expected to deliver substantial benefits to Nigeria through billions of dollars of 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.