The Nigerian National Petroleum Company Limited (NNPC Ltd) and the OML 118 Contractor Parties, comprising Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE), have executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA), a move officials say marks a major milestone in advancing the deepwater Bonga Southwest/Aparo (BSWAp) project toward Final Investment Decision (FID).
Signed at the NNPC Towers on Monday in Abuja, the execution gives effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp, reinforcing Nigeria’s commitment to a competitive, stable and attractive environment for large scale deepwater investment.
The milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a key component of government reforms aimed at strengthening the competitiveness of Nigeria’s deepwater sector and unlocking new investment. NNPC said the PSC and DSA Addenda show the practical impact of these reforms in translating policy into project development.
BSWAp is projected to be one of Nigeria’s largest deepwater developments, with the potential to attract between $15 billion and $21 billion in investment over its lifespan and reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day. The project is expected to boost government revenues, foreign exchange earnings, local content development, employment and business opportunities for Nigerians.
Speaking on the development, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, said the execution of the addenda “demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment.”
He added, “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, in a statement by the Chief Corporate Communications Officer of the NNPC Limited, Andy Odeh, said NNPC Ltd would “continue to work closely with the Federal Government, our partners and other stakeholders to ensure that this 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 it 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 Floating Production Storage and Offloading (FPSO) contractor for the project, subject to completion of applicable partner, regulatory, assurance and governance processes. Officials said any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains contingent on the completion of all required approvals.
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 oil and gas production. It is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhanced local fabrication, marine and engineering capabilities, technology transfer and skills development.
NNPC Ltd described the milestone as a reflection of strong collaboration among the company, the Federal Government, regulatory agencies and the OML 118 Contractor Parties, and reaffirmed its commitment to advancing the project safely, competitively and responsibly while maximizing value for Nigeria and its people.
