The Nigerian National Petroleum Company Limited and the OML 118 contractor parties have executed an addendum to the OML 118 Production Sharing Contract and an addendum to the Dispute Settlement Agreement.
The agreement, signed at the NNPC Towers on Monday in Abuja, marked a major milestone in advancing the deepwater Bonga Southwest/Aparo (BSWAp) project toward a Final Investment Decision.
The parties included Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
Speaking on the development, NNPCL Group CEO Chairman Mr Bashir Ojulari said the execution gave effect to fiscal and commercial terms approved by the Federal Government to support the development of BSWAp.
In a statement, Mr Ojulari expressed Nigeria’s commitment to a competitive, stable, and attractive environment for large-scale deepwater investment.
“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.
Mr Ojulari said NNPCL would continue to work closely with the federal government, its partners, and other stakeholders to ensure the project delivers maximum value for the Federation and the Nigerian people.
The Contractor Parties also announced the successful completion of the project’s Pre Front End Engineering Design (Pre FEED) phase.
This is an important step in maturing the technical and commercial scope of the development and positioning it to progress into the FEED phase, subject to applicable partner, assurance and governance requirements.
Following a competitive selection process, the company identified a bidder as the preferred Floating Production Storage and Offloading contractor for the project, subject to completion of applicable partner, regulatory, assurance and governance processes.
Officials said any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract remains contingent on completing all required approvals.
Once operational, BSWAp is expected to become one of Nigeria’s most significant new deepwater production hubs, contributing materially to national oil output and supporting the country’s ambition to grow oil and gas production sustainably.
It is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, enhanced local fabrication, marine and engineering capabilities, technology transfer and skills development.