Nigeria’s push to revive investment in its deepwater oilfields gained major momentum on Monday, August 24, 2026, as the Nigerian National Petroleum Company Limited (NNPC Ltd) and its joint venture partners signed key commercial addenda expected to move the long-delayed Bonga Southwest/Aparo (BSWAp) deepwater project closer to a Final Investment Decision (FID).
​The signing ceremony, held in Abuja, brought together NNPC Ltd and the Oil Mining Lease (OML) 118 Contractor Parties, which include Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).
​Together, the entities executed an Addendum to the OML 118 Production Sharing Contract (PSC) and an Addendum to the Dispute Settlement Agreement (DSA). The agreements formally implement the new fiscal and commercial frameworks approved by the Federal Government to support the development of BSWAp.
​The BSWAp development estimated to attract between $15 billion and $21 billion in capital investments over its operational lifecycle is targeted to become one of Nigeria’s largest offshore petroleum hubs. At peak capacity, the field is expected to generate approximately 175,000 barrels of crude oil per day (bopd) and 140 million standard cubic feet of gas per day (mmscfd).
​The execution of these commercial terms follows President Bola Ahmed Tinubu’s landmark approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. The order was enacted to enhance the global competitiveness of Nigeria’s deepwater fiscal regime and eliminate decades of contractual uncertainty.
​Discovered in 2001, the Bonga Southwest/Aparo field spans OML 118, OML 140, and OML 132 in the offshore Niger Delta. Despite its proven, world-class reserves, progress had been stalled for nearly 25 years due to legal disputes, shifting global energy investments, and unaligned fiscal terms.
​Speaking on the milestone, the Group Chief Executive Officer of NNPC Ltd, Bashir Ojulari, stated that the deal serves as tangible evidence of Nigeria’s evolving investment climate:
​”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.”
​Highlighting the public statement released following the signing ceremony, NNPC Ltd Chief Corporate Communications Officer Andy Odeh emphasized the long-term economic gains for indigenous entities:
​”The milestone reinforces Nigeria’s commitment to creating a competitive, stable, and attractive environment for large-scale deepwater investment. The project is expected to deliver substantial benefits through billions of dollars of investment, increased participation by Nigerian contractors and suppliers, and direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics, and operations.”
​The progression toward FID on the Bonga Southwest/Aparo project provides significant economic benefits: Unlocks up to $21 billion in capital expenditure over the life of the asset.
Projected peak output of 175,000 bopd and 140 mmscfd of gas. A bidder has already emerged as the preferred contractor for the Floating Production Storage and Offloading (FPSO) vessel designated for the field.
Local content guarantees expanded contracting opportunities for local engineering, marine, and fabrication firms, boosting technology transfer and skills development across the country.
​With the commercial terms codified, the joint venture partners are expected to complete technical evaluations, finalize procurement packages, and formally announce the Final Investment Decision (FID) in the coming months.
