By Kwin Israel, The Sight News
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) on Monday executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA), marking a major milestone in advancing the deepwater Bonga Southwest/Aparo (BSWAp) project toward Final Investment Decision (FID).
The execution gives effect to the fiscal and commercial terms approved by the Federal Government to support BSWAp’s development and underscores Nigeria’s commitment to fostering a competitive, stable and attractive environment for large-scale deepwater investment.
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 demonstrate the practical impact of these reforms in translating policy into tangible 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 and reach peak production of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The development is projected to contribute significantly to Nigeria’s economy through increased oil and gas production, government revenues, foreign exchange earnings, local content growth, employment, and expanded opportunities for Nigerian businesses.
Commenting on the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the PSC and DSA Addenda reflects the effectiveness of President Tinubu’s reforms in translating policy into investment.
He noted that the achievement underscores Nigeria’s competitive fiscal framework and its clear pathway for sustainable investment in the energy sector, and affirmed that NNPC Ltd would continue working closely with the Federal Government, its partners, and other stakeholders to ensure 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 — 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 contractor for the project’s Floating Production Storage and Offloading (FPSO) facility, 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 undertaking the further engineering and commercial work required to mature the project toward 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 output and supporting the country’s ambition to sustainably grow its oil and gas production in the years ahead.
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 across engineering, fabrication, offshore construction, logistics and operations. BSWAp is also expected to strengthen Nigerian content by expanding 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 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.
