NNPC, Partners Sign Bonga Southwest Addenda, Target $21bn Investment
The milestone, announced by NNPC Ltd on Monday, is expected to advance the project towards Final Investment Decision (FID) and unlock between $15bn and $21bn in investment over the life of the development.
The OML 118 contractor parties involved in the agreement are Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited (NAE).
NNPC said the agreements give effect to fiscal and commercial terms approved by the Federal Government for the development of BSWAp, reinforcing efforts to create a competitive and stable environment for large-scale deepwater investments.
The development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which the company said was designed to improve the competitiveness of Nigeria’s deepwater sector and attract new investments.
BSWAp is projected to become one of Nigeria’s largest deep-water developments, with peak production estimated at about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project is also expected to boost government revenues and foreign exchange earnings while creating employment, expanding opportunities for Nigerian businesses and increasing participation by local contractors and suppliers.
Speaking on the milestone, NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the execution of the agreements demonstrated the impact of the Federal Government’s reforms in converting policy measures into investments.
“The execution of the BSWAp PSC and DSA Addenda demonstrates the effectiveness of President Tinubu’s reforms in translating policy into investment,” Ojulari said.
He said the project would demonstrate that Nigeria had a competitive fiscal framework and a clear pathway for sustainable investment in its energy sector.
NNPC said the project partners had also completed the Pre-Front End Engineering Design (Pre-FEED) phase, allowing the technical and commercial scope of the development to be further matured ahead of the Front End Engineering Design (FEED) phase.
The company added that a preferred contractor had been identified for the Floating Production Storage and Offloading (FPSO) facility following a competitive selection process.
However, the selection remains subject to partner, regulatory, assurance and governance requirements. Any eventual award of the FPSO Engineering, Procurement, Construction and Installation (EPCI) contract will also require the completion of all applicable approvals.
When operational, BSWAp is expected to become a major new deepwater production hub in Nigeria and contribute significantly to national oil and gas output.
NNPC said the project would also provide opportunities for indigenous companies in engineering, fabrication, offshore construction, logistics and operations, while supporting technology transfer and skills development.
The company reaffirmed its commitment to working with the Federal Government, regulators, project partners and other stakeholders to advance the development safely and competitively while maximising value for Nigeria.
