The Nigerian National Petroleum Company Limited (NNPCL) and the contractor parties to OML 118 have signed an addendum to the OML 118 Production Sharing Contract (PSC) and another to the Dispute Settlement Agreement (DSA).
The agreements were executed at the NNPC Towers in Abuja on Monday, marking a significant step towards the Final Investment Decision for the deepwater Bonga Southwest/Aparo (BSWAp) project.
The parties involved are Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
NNPCL Group Chief Executive Officer, Bashir Ojulari, said the agreements give effect to fiscal and commercial terms approved by the Federal Government to facilitate the development of BSWAp.
In a statement, Ojulari reaffirmed Nigeria’s commitment to creating a competitive, stable and attractive environment for large scale deepwater investments.
“The milestone follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, a key component of government reforms aimed at strengthening the competitiveness of Nigeria’s deepwater sector and unlocking new investment.
“The PSC and DSA Addenda show the practical impact of these reforms in translating policy into project development. SWAp is projected to be one of Nigeria’s largest deepwater developments, with the potential to attract between $15 billion and $21 billion in investment over its lifespan and reach peak production of 175,000bpd and 14mscf of gas daily.
“The project is expected to boost government revenues, foreign exchange earnings, local content development, employment and business opportunities for Nigerians,” he said.
Ojulari added that NNPCL would continue collaborating with the Federal Government, its partners and other stakeholders to maximise the project’s value for the Federation and Nigerians.
The contractor parties also confirmed that the project’s Pre Front End Engineering Design (Pre FEED) phase had been successfully completed.
The completion represents a key stage in refining the project’s technical and commercial scope and preparing it for the FEED phase, subject to the necessary partner, assurance and governance requirements.
Following a competitive bidding process, a preferred bidder has also been identified for the project’s Floating Production Storage and Offloading (FPSO) facility. However, the selection remains subject to the completion of relevant partner, regulatory, assurance and governance procedures.
Officials stressed that any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will depend on securing all required approvals.
When operational, BSWAp is expected to emerge as one of Nigeria’s major new deepwater production hubs, contributing significantly to national oil production while supporting the country’s goal of achieving sustainable growth in oil and gas output.
The project is also expected to expand opportunities for indigenous companies through increased contracting, local fabrication, marine and engineering services, technology transfer and skills development.
