By Onu Okorie

Nigerian National Petroleum Company Limited (NNPC Ltd) and its OML 118 contractor partners deal in Bonga South West Aparo project is expected to attract between $15 billion and $21 billion in investment over its lifespan.
At peak production, the field is projected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
NNPC said the milestone follows President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, aimed at boosting competitiveness in Nigeria’s deepwater oil and gas sector and attracting fresh investment.
Nigerian National Petroleum Company Limited (NNPC Ltd) and its OML 118 contractor partners have signed critical addenda to the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) for the Bonga South West Aparo (BSWA) project, moving the deepwater development closer to a Final Investment Decision (FID).
The contractor parties include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE). The agreements give effect to fiscal and commercial terms approved by the Federal Government to support the project’s development.
Speaking on the development, NNPC Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, described the execution of the agreements as evidence that government reforms are helping to convert policy initiatives into major energy investments.
He said the project would help demonstrate Nigeria’s competitiveness as a destination for sustainable investment in the energy sector.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, clearing the way for progression to the Front End Engineering Design (FEED) stage, subject to partner and regulatory approvals.
In addition, a preferred bidder has been identified for the Floating Production Storage and Offloading (FPSO) facility following a competitive selection process. However, the eventual award of the Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to the completion of all necessary approvals.
According to NNPC, once operational, the BSWA project is expected to become one of Nigeria’s largest deepwater production hubs, boosting national oil and gas output while generating government revenue, foreign exchange earnings, employment, and opportunities for local businesses. The company also said the project would strengthen Nigerian content through increased participation of indigenous firms, technology transfer, skills development, and expanded local fabrication and engineering capacity.
The state oil company reaffirmed its commitment to working with government agencies and industry partners to advance the project safely and competitively while maximizing value for Nigeria.