…The project has been under development for years amid contractual and commercial issues.
…The latest agreements are intended to provide a clearer framework for the partners to proceed towards FID and eventual project development.
MON AUG 24 2026-theGBJournal| The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractors to OML 118 have signed agreements aimed at moving the long-delayed Bonga South-West/Aparo (BWSAp) deepwater project towards a Final Investment Decision (FID).
NNPC Ltd and the OML 118 contractor parties — Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE) — executed an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA).
The agreements mark a significant step towards unlocking one of Nigeria’s largest undeveloped deepwater oil projects, with estimated investment of between $15 billion and $21 billion.
The execution also 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 Bonga South-West/Aparo development is expected to significantly expand Nigeria’s deepwater oil production and attract substantial foreign investment, while generating additional government revenues and supporting local economic activity.
The project has been under development for years amid contractual and commercial issues. The latest agreements are intended to provide a clearer framework for the partners to proceed towards FID and eventual project development.
The execution of the PSC and DSA addenda therefore represents more than a contractual milestone: it signals renewed momentum for a major offshore investment at a time when Nigeria is seeking to revive large-scale upstream projects and strengthen crude oil production.
Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo 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.
NNPC Ltd will 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, 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.
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