FG eyes $21bn investment from Bonga Southwest/Aparo Deepwater Project
…… NNPC, Partners sign key agreements

By Onu Okorie

Nigerian National Petroleum Company Limited NNPC Ltd and its OML 118 contractor partners have signed critical agreements aimed at advancing the Bonga Southwest/Aparo deep water project toward a Final Investment Decision FID in a move expected to attract between $15 billion and $21 billion in investment.

The agreements, comprising an addendum to the OML 118 Production Sharing Contract PSC and an addendum to the Dispute Settlement Agreement DSA, were executed by NNPC Ltd, Shell Nigeria Exploration and Production Company Limited SNEPCo, Esso Exploration and Production Nigeria DeepwaterbLimited, and Nigerian Agip Exploration Limited NAE

According to NNPC Ltd, the agreements implement fiscal and commercial terms approved by the Federal Government to support the development of the Bonga Southwest/Aparo project and strengthen Nigeria’s attractiveness as a destination for large-scale deepwater investments.

The milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives, Tax Remission Order, 2026, which is designed to improve the competitiveness of Nigeria’s deepwater sector and stimulate investment.

NNPC Ltd said the project could become one of Nigeria’s largest deepwater developments, with potential peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day. The company added that the project is expected to generate substantial government revenue, foreign exchange earnings, employment and opportunities for local businesses.

Speaking on the development, NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said the signing demonstrated the impact of ongoing reforms in translating government policy into investment and project development. He noted that the company would continue to work with the Federal Government and industry partners to ensure the project delivers value to Nigerians.

The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design Pre-FEED phase, paving the way for progression into the Front End Engineering Design FEED stage, subject to relevant approvals and governance processes.

In addition, a preferred bidder has been identified for the project’s Floating Production Storage and Offloading FPSO facility following a competitive selection process. However, NNPC said any eventual contract award remains subject to regulatory, partner and governance approvals.

Once operational, the Bonga Southwest/Aparo project is expected to become a major deepwater production hub, supporting Nigeria’s drive to increase oil and gas output while creating significant opportunities in engineering, fabrication, offshore construction, logistics and operations. It is also expected to boost local content participation, technology transfer and skills development across the economy.

NNPC Ltd described the achievement as the result of collaboration among the Federal Government, regulators and contractor parties, reaffirming its commitment to advancing the project safely and competitively.