NNPC Limited and its OML 118 contractor partners—Shell Nigeria Exploration and Production Company (SNEPCo), Esso Exploration and Production Nigeria Limited, and Nigerian Agip Exploration (NAE)—have executed the Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) addenda for the Bonga Southwest/Aparo (BSWAp) deepwater project.The signing ceremony on Monday, August 24, 2026, marks a major regulatory milestone pushing the long-delayed offshore asset closer to a Final Investment Decision (FID).
What is the economic significance of the Bonga Southwest/Aparo deepwater deal?
The Bonga Southwest/Aparo project, situated within Oil Mining Lease (OML) 118 approximately 120 kilometres offshore Nigeria, is expected to unlock between $15 billion and $21 billion in capital expenditure over its operational lifespan. At peak production, the deepwater development is projected to yield 175,000 barrels of crude oil per day (kbopd) and 140 million standard cubic feet of natural gas per day (mmscfd). Announcing the milestone, the Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Bayo Ojulari, emphasized that the executed addenda signal a transformative chapter for Nigeria’s energy sector and foreign direct investment inflows.
“Today is for everyone who believes in Nigeria’s deepwater potential. This is about more than barrels. It’s about up to $15B–$21B in potential investment, 175 kbopd oil and 140 mmscfd gas, Nigerian jobs and local content creation, stronger supply chains, and real revenue for our nation.”
The execution of the agreements follows the recent approval of the 2026 Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order by President Bola Ahmed Tinubu.The fiscal framework was structured to resolve long-standing commercial disputes and enhance the global competitiveness of Nigeria’s deep-offshore assets.
“Thank you to President Tinubu for the 2026 Deep Offshore Incentives Order, and to our regulators, contractor parties, and teams for their dedication. Together, we’re creating an environment where everyone wins. BSWAp is ours to deliver. Together.”
Industry stakeholders note that the project execution phase is poised to revitalize dormant fabrication yards across the country, while expanding subsea engineering, marine logistics, and skilled technical employment for indigenous service providers.
“The project is expected to deliver substantial benefits to Nigeria through billions of dollars of investment, increased participation by Nigerian contractors and suppliers, and significant direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.”
With the execution of the PSC and DSA addenda completed, the joint venture consortium will now focus on completing final engineering, procurement, and contracting evaluations to achieve FID.Will this landmark deepwater deal unlock a new wave of offshore oil and gas exploration across West Africa?
