NNPC, Shell, Esso, Agip Sign PSC, DSA Addenda for $21bn Bonga South-West Aparo Project

A major milestone has been reached in Nigeria's deepwater oil and gas sector with the execution of Addenda to the Oil Mining Lease (OML) 118 Production Sharing Contract (PSC) and the Dispute Settlement Agreement (DSA). 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), signed the agreements on Monday.

This development is crucial for the advancement of the Bonga Southwest/Aparo project (BSWAp) toward a Final Investment Decision (FID). The agreements formalize the fiscal and commercial terms approved by the federal government, aimed at fostering a stable and attractive environment for large-scale deepwater investments. This initiative aligns with President Bola Ahmed Tinubu's ongoing reforms to enhance the competitiveness of Nigeria's deepwater sector.

The BSWAp project is poised to become one of Nigeria's largest deepwater developments. It has the potential to attract substantial investment, estimated between $15 billion and $21 billion over its lifespan. The project is projected to achieve peak production of approximately 175,000 barrels of oil per day (kbopd) and 140 million standard cubic feet of gas per day (mmscfd).

Beyond increased production, the development is expected to significantly benefit Nigeria's economy. Contributions will include higher government revenues, increased foreign exchange earnings, substantial local content development, job creation, and expanded opportunities for Nigerian businesses. Group Chief Executive Officer of NNPCL, Bayo Ojulari, emphasized the effectiveness of President Tinubu's reforms in translating policy into tangible investment, stating, "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."

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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.