Nigeria moves closer to unlocking $21 billion Bonga deepwater oil project
NNPC and its OML 118 partners have signed revised agreements advancing the Bonga South-West/Aparo deepwater project towards a final investment decision.
The project is expected to attract between $15 billion and $21 billion in investment over its lifespan.
Bonga South-West/Aparo could produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily at peak output.
Nigeria’s state-owned oil company and its international partners have signed revised contractual agreements for the Bonga South-West/Aparo deepwater project, clearing another key hurdle towards a final investment decision on a development expected to attract as much as $21 billion.
The Nigerian National Petroleum Company Limited (NNPC) said on Monday that it executed addenda to the OML 118 Production Sharing Contract (PSC) and Dispute Settlement Agreement (DSA) with Shell Nigeria Exploration and Production Company (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited.
The agreements incorporate fiscal and commercial terms approved by the Federal Government for the project and follow President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
NNPC said the Bonga South-West/Aparo development could attract between $15 billion and $21 billion in investment over its lifespan and reach peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
If developed as planned, the project could become one of Nigeria’s largest new deepwater production hubs and provide additional output as the country seeks to raise crude production and attract investment into an industry that has struggled with years of underinvestment and delays to major projects.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” NNPC Group Chief Executive Officer Bashir Bayo Ojulari said.
“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,” he added.
Bonga targets 175,000 barrels of oil per day
Despite the progress, the project has not yet reached a final investment decision, meaning significant commercial, technical and regulatory steps remain before full development is committed.
The contractor parties have completed the project’s pre-Front End Engineering Design phase and are preparing to move into Front End Engineering Design, subject to partner, assurance and governance requirements.
NNPC also said a preferred contractor had been identified through a competitive process for the project’s Floating Production Storage and Offloading vessel. The selection remains subject to partner, regulatory and governance approvals, while any eventual engineering, procurement, construction and installation contract will require further approvals.
Beyond additional crude and gas output, the project is expected to create opportunities for Nigerian engineering, fabrication, logistics, marine and offshore service companies. NNPC also expects the development to support technology transfer and skills development.
The latest agreements come as Nigeria attempts to revive investment in its deepwater oil industry through fiscal incentives and regulatory reforms. For Bonga South-West/Aparo, however, the critical next test will be whether the revised commercial framework and engineering progress translate into a final investment decision and, ultimately, production.
