The Nigerian National Petroleum Company Limited and the contractor parties for Oil Mining Lease 118 have executed key legal and commercial agreements that move Nigeria's Bonga South-West Aparo deepwater project closer to a Final Investment Decision, with the development projected to attract between USD 15 billion and USD 21 billion in investment over its lifetime.

Agreements Signed and Parties Involved

The signing took place on August 24, 2026, at NNPC Towers in Abuja, where NNPC Ltd and the three OML 118 Contractor Parties executed an Addendum to the OML 118 Production Sharing Contract and an Addendum to the Dispute Settlement Agreement.

The contractor parties are Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited. Senior executives present at the signing included NNPC Ltd Group Chief Executive Officer Engr.

Bashir Bayo Ojulari, EVP and Country Chair of Shell Companies in Nigeria, Elohor Aiboni, Managing Director of SNEPCo Ronald Adams, Managing Director of Esso, Jagir Baxi, and Managing Director of NAE, Maurizio Pinna.

The execution of the addenda gives effect to fiscal and commercial terms approved by the Federal Government to support the development of the Bonga South-West Aparo project, known as BSWAp.

Government Policy Framework Behind the Deal

The signing follows the approval by President Bola Ahmed Tinubu of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. NNPC Ltd described this order as an important component of the Federal Government's ongoing reforms aimed at enhancing the competitiveness of Nigeria's deepwater sector and unlocking new investment.

The company stated that the PSC and DSA addenda demonstrate the practical impact of these reforms in translating policy into project development.

Ojulari commented on the milestone, saying the execution of the agreements demonstrates the effectiveness of President Tinubu's reforms in translating policy into investment.

He described the signing as being 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.

Scale and Production Projections

BSWAp is expected to be one of Nigeria's largest deepwater developments. At peak production, the project is anticipated to produce approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.

NNPC Ltd stated that 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.

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.

Engineering Progress and FPSO Selection

Alongside the agreement signings, the contractor parties announced the successful completion of the project's Pre-Front End Engineering Design phase.

NNPC Ltd described this as an important milestone in maturing the technical and commercial scope of the development, positioning the project to move into the Front End Engineering Design phase, subject to applicable partner, assurance, and governance requirements.

A preferred Floating Production Storage and Offloading contractor has also been identified following a competitive selection process. The selection is subject to the completion of applicable partner, regulatory, assurance, and governance processes.

NNPC Ltd said the identification of a preferred bidder provides a basis for progressing the FPSO concept into FEED and for undertaking further engineering and commercial work required to mature the project toward a Final Investment Decision.

The company noted that any eventual award of the FPSO Engineering, Procurement, Construction and Installation contract remains subject to the completion of all applicable approvals and requirements.

Nigerian Content and Employment Commitments

NNPC Ltd outlined a range of expected local economic benefits from the project.

BSWAp is anticipated to deliver billions of dollars of investment alongside increased participation by Nigerian contractors and suppliers, with significant direct and indirect employment opportunities expected across engineering, fabrication, offshore construction, logistics, and operations.

The project is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhanced local fabrication, marine, and engineering capabilities, as well as technology transfer and skills development. NNPC Ltd described these outcomes as creating lasting value across the wider Nigerian economy.

Next Steps Toward Final Investment Decision

NNPC Ltd reaffirmed its commitment to working with all stakeholders to advance the BSWAp project safely, competitively, and responsibly, while maximizing value for Nigeria and the Nigerian people.

The company stated that the milestone reflects 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.

The project's progression into FEED and the further engineering and commercial work required to reach a Final Investment Decision remain subject to the completion of applicable approvals and partner and governance processes.