The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractor parties to Oil Mining Lease (OML) 118 have signed addenda to the OML 118 Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA), paving the way for further development of the Bonga South West/Aparo (BSWAp) deepwater project.
The agreements were executed on Monday by NNPC and the OML 118 contractor parties, comprising Shell Nigeria Exploration and Production Company (SNEPCo) Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration (NAE) Limited.
According to a statement by NNPC spokesperson, Andy Adeh, the agreements give effect to fiscal and commercial terms approved by the Federal Government to support the BSWAp project.
The development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, as the government seeks to create a more competitive fiscal environment for major deepwater investments.
The BSWAp project is projected to attract between $15 billion and $21 billion in investment over its lifetime, with peak production estimated at about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
NNPC said the project would increase oil and gas production, government revenue and foreign exchange earnings, while creating opportunities for Nigerian contractors and suppliers and generating direct and indirect employment.
The company also announced that the contractor parties had completed the project’s pre-Front End Engineering Design (Pre-FEED) phase.
According to NNPC, the milestone will help advance the project’s technical and commercial scope ahead of the FEED phase, subject to the required partner, assurance and governance processes.
A preferred contractor has also been identified for the Floating Production Storage and Offloading (FPSO) facility following a competitive selection process.
However, NNPC said the selection remains subject to applicable partner, regulatory, assurance and governance requirements, stressing that any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will require all necessary approvals.
Commenting on the development, NNPC Group Chief Executive Officer, Bayo Ojulari, said the execution of the agreements demonstrated the impact of the Tinubu administration’s reforms in translating policy decisions into investments.
“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,” Ojulari said.
He added that NNPC would continue working with the Federal Government, its partners and other stakeholders to ensure the project delivers maximum value to the Federation and Nigerians.
