State energy firm NNPC Limited and its joint venture partners have signed key agreements to advance the deepwater Bonga South-West/Aparo (BSWAp) project, which is projected to attract between $15bn and $21bn in investment.
The execution of the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) addenda was announced on Monday, 24 August 2026, by NNPC Spokesperson Andy Odeh. The signing follows President Bola Tinubu’s approval of new deep-offshore tax incentives designed to attract large-scale international energy investments.
Major Milestone Toward Final Investment Decision
The agreement between NNPC Ltd and the OML 118 contractor group—including Shell Nigeria Exploration and Production Company (SNEPCo), Esso Exploration, and Nigerian Agip Exploration—moves the long-delayed deepwater field closer to a Final Investment Decision (FID).
Key developments outlined in the agreement include:
- Production Capacity: The BSWAp development is expected to become one of Nigeria’s largest deepwater hubs, with peak production targets of roughly 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).
- FPSO Contractor Selected: Following a competitive selection process, a preferred contractor has been identified for the project’s Floating Production Storage and Offloading (FPSO) vessel, subject to regulatory and partner approvals.
- Engineering Phase Progression: The project has completed its pre-front-end engineering design (pre-FEED) stage and is moving into the formal front-end engineering design (FEED) phase.
- Economic Impact: NNPC Chief Executive Engr. Bashir Bayo Ojulari noted that the commercial terms would boost government revenues, create jobs, and expand local fabrication and marine supply opportunities for indigenous firms.
The development signals renewed momentum for Nigeria’s offshore oil sector as the country seeks to significantly increase daily crude output and secure foreign direct investment.
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