By Mary Izuaka

 

The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners in OML 118 have signed an addendum to advance the Bonga Southwest/Aparo project (BWSAp), paving the way for what is expected to be Nigeria’s largest deepwater development with up to $21 billion in potential investment.

NNPC Ltd Chief Corporate Communications Officer, Andy Odeh, disclosed this in a statement on Monday.

Mr Odeh said the NNPC, alongside Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE), executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA) on Monday.

The execution, according to him, 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 Ahmed 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 statement said.

BSWAp, according to the NNPC, is expected to be one of Nigeria’s largest deepwater developments, with the potential to attract $15 billion to $21 billion in investment over the life of the project and achieve peak production of about 175 kbopd of oil and 140 mmscfd of gas.

The state-owned oil company said the development is expected to contribute significantly to Nigeria’s economy through increased oil and gas production, government revenues, foreign exchange earnings, local content development, employment and expanded opportunities for Nigerian businesses.

Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Bashir Ojulari, said: “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.”

He said NNPC Ltd will continue to work closely with the federal government, its partners and other stakeholders to ensure that this project delivers maximum value for the Federation and the Nigerian people.

Milestones reached

Mr Odeh said 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, NNPC said it has identified a bidder 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.

What it means for Nigeria

“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 grow oil and gas output over the coming years sustainably.

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“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,” the statement said.

NNPC said 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.

The milestone, Mr Odeh said, 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 BSWA project safely, competitively and responsibly, while maximising value for Nigeria and the Nigerian people.