NNPC, SNEPCo, Esso, Agip Move Towards FID, Target $21bn Inflow

• Peak production projected at 175,000 bpd, 140 million scf/day in OML 118

• Project set to become Nigeria’s largest deep water facility

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

The Nigerian National Petroleum Company Limited (NNPCL) and its contractor parties  — Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE) – yesterday executed the Addendum to the Oil Mining Lease (OML 118) Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA).

The development marked a major milestone in the advancement of the deepwater Bonga Southwest/Aparo project (BWSAp) towards Final Investment Decision (FID).

NNPCL announced the deals in a statement signed by its Chief Corporate Communications Officer, Mr. Andy Odey.

The execution 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 milestone follows the approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, by President Bola Ahmed Tinubu, an important component of the government’s ongoing reforms to enhance the competitiveness of Nigeria’s deepwater sector and unlock new investment.

BSWAp is expected to attract between $15 billion and $21 billion in investment over the life of the project, with peak production projected at about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day, the national oil firm stated.

The project is expected to boost Nigeria’s oil and gas production, government revenues and foreign exchange earnings, while creating opportunities for local contractors and suppliers and supporting employment, skills development and technology transfer.

Speaking on the milestone, the Group Chief Executive Officer of NNPC, Bayo Ojulari, said  the project will unlock a major deepwater project, demonstrating that Nigeria has a competitive fiscal framework and a clear pathway for sustainable investment in its energy sector

“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,” he explained.

The OML 118 Contractor Parties also announced the successful completion of the project’s Pre-Front End Engineering Design (Pre-FEED) phase, which they said had helped mature the technical and commercial scope of the development and positioned it to progress into the Front End Engineering Design (FEED) phase.

However, the transition to FEED remains subject to applicable partner, assurance and governance requirements.

The partners have also identified a preferred Floating Production Storage and Offloading (FPSO) contractor following a competitive selection process. The selection, the statement said, is subject to the completion of applicable partner, regulatory, assurance and governance processes.

According to the oil company,it provides a basis for progressing the FPSO concept into FEED and undertaking further engineering and commercial work required to mature the project towards FID.

However, any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains subject to all applicable approvals and requirements, it explained.

When operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs and contribute materially to national oil production.

The project is also expected to generate substantial economic benefits through billions of dollars in investment, increased participation by Nigerian contractors and suppliers and direct and indirect employment opportunities across engineering, fabrication, offshore construction, logistics and operations.

The development is expected to strengthen Nigerian content by expanding contracting opportunities for indigenous companies, enhancing local fabrication, marine and engineering capabilities, facilitating technology transfer and skills development, and creating opportunities across the wider economy.

The execution of the agreements reflects collaboration among NNPC Ltd, the federal government, regulatory agencies and the OML 118 Contractor Parties as the project advances towards FID.

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