NNPC, partners advance $21bn Bonga offshore project

Nigeria's efforts to revitalize investment in its deepwater oilfields have gained significant traction with the Nigerian National Petroleum Company Limited (NNPC) and its partners advancing the Bonga Southwest/Aparo project. This initiative, estimated to attract up to $21 billion in investment, is now closer to a Final Investment Decision following the signing of key agreements.

The Bonga Southwest/Aparo project, situated in Oil Mining Lease 118, is poised to become one of Nigeria's largest new deepwater developments. Projections indicate a peak production capacity of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily. The NNPC Ltd, alongside OML 118 Contractor Parties including Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited, executed addenda to the OML 118 Production Sharing Contract and the Dispute Settlement Agreement.

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The Nigerian National Petroleum Company Limited, and the OML 118 Contractor Parties, Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited, today executed the Addendum to the OML 118 Production Sharing Contract and the Addendum to the Dispute Settlement Agreement, marking a major milestone in the advancement of the deepwater Bonga Southwest/Aparo project towards Final Investment Decision.

These agreements implement new fiscal and commercial terms approved by the Federal Government, designed to foster the development of the Bonga Southwest/Aparo project. This progress is particularly crucial for Nigeria, which has faced challenges in securing substantial new investments in its deepwater petroleum sector despite holding significant offshore oil and gas reserves. Deepwater projects demand substantial upfront capital and long-term fiscal stability, making a country's tax and commercial framework a critical factor for international investors.

According to NNPC's Chief Corporate Communications Officer, Andy Odeh, the executed agreements demonstrate the tangible impact of the Federal Government's recent reforms aimed at enhancing Nigeria's appeal for deepwater investment. The milestone follows President Bola Tinubu's approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, intended to boost the competitiveness of Nigeria's deepwater fiscal regime and unlock further investments.

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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.