By Katsina Times

The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractors to Oil Mining Lease (OML) 118 have signed key agreements to advance the Bonga Southwest-Aparo (BSWAp) deepwater oil and gas project towards Final Investment Decision (FID).

The agreements, signed on Monday, include an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA).

The parties involved are Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).

NNPC said the agreements give effect to fiscal and commercial terms approved by the Federal Government to facilitate the development of the project and attract large-scale investment into Nigeria's deepwater oil sector.

The development follows President Bola Ahmed Tinubu's approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is part of ongoing government reforms aimed at improving the competitiveness of Nigeria's deepwater industry.

According to NNPC, the BSWAp project could attract between $15 billion and $21 billion in investment over its lifespan and reach peak production of approximately 175,000 barrels of oil per day, alongside 140 million standard cubic feet of gas per day.

The company said the project is expected to boost Nigeria's oil and gas production, government revenues and foreign exchange earnings, while creating employment and expanding opportunities for Nigerian businesses.

The Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, described the agreement as evidence that the Federal Government's reforms were beginning to translate into major investment opportunities.

“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu's reforms in translating policy into investment,” Ojulari said.

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He said NNPC would continue working with the Federal Government, project partners and other stakeholders to ensure that the development delivers maximum value to Nigeria.

The project partners also announced the completion of the Pre-Front End Engineering Design (Pre-FEED) phase, paving the way for the project to progress into the Front End Engineering Design (FEED) stage, subject to the required approvals and governance processes.

NNPC further disclosed that a preferred contractor had been identified for the project's Floating Production Storage and Offloading (FPSO) facility following a competitive selection process.

However, the company said the eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract would remain subject to regulatory, partner and other applicable approvals.

When completed, BSWAp is expected to become one of Nigeria's major deepwater production hubs and contribute significantly to national oil output.

The project is also expected to generate employment and increase opportunities for Nigerian contractors and suppliers in areas including engineering, fabrication, offshore construction, logistics and operations.

NNPC said the development would further strengthen Nigerian content through increased participation of indigenous companies, local fabrication, technology transfer and skills development.

The company reaffirmed its commitment to working with the Federal Government, regulators and project partners to advance the BSWAp project safely and competitively while maximising its benefits to the Nigerian economy.

24 August 2026