Favour Ishember, Abuja
The Nigerian National Petroleum Company Limited has sealed new contract amendments with its partners on Oil Mining Lease 118, moving the Bonga Southwest and Aparo deepwater venture a big step closer to a Final Investment Decision.
Announced on Monday, August 24, 2026, by Lukman Babalola, the signing covers updates to both the Production Sharing Contract and the Dispute Settlement Agreement for the BSWAp project.
The partner firms on the deal are Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited, and Nigerian Agip Exploration Limited.
According to NNPC Ltd, the revised terms put into force the fiscal and commercial framework already approved by the Federal Government. The goal is to back the rollout of BSWAp and position Nigeria as a prime location for big-ticket deepwater projects.
The agreement comes on the heels of President Bola Tinubu’s sign-off on the Deep Offshore Oil and Gas Projects Incentives, Tax Remission Order, 2026. That policy is designed to make Nigeria’s deepwater space more competitive and to draw in fresh capital.
In terms of scale, BSWAp is forecast to attract between $15 billion and $21 billion over its lifespan. At peak, it could deliver about 175,000 barrels of crude oil per day and 140 million standard cubic feet of natural gas per day.
The venture is expected to lift Nigeria’s overall oil and gas output, raise government revenue, boost foreign exchange inflows, and open work for local contractors, suppliers and the workforce.
Group Chief Executive Officer of NNPC Ltd, Engr. Bashir Ojulari said the signing shows how government reforms are turning policy into real investment. He added that NNPC Ltd will keep collaborating with government, partners and other stakeholders to ensure Nigeria gets the fullest benefit from the project.
The partners also confirmed that the Pre-Front End Engineering Design phase has been wrapped up. That clears the path to move into the Front End Engineering Design stage, pending partner reviews and governance checks.
In addition, a preferred bidder has been chosen for the project’s Floating Production Storage and Offloading vessel after a competitive tender. The final choice still depends on completing partner, regulatory, assurance and governance steps. Any award of the FPSO Engineering, Procurement, Construction and Installation contract will also need all required approvals.
Once up and running, BSWAp is set to become a major new deepwater production center. It should add significantly to Nigeria’s crude volumes and support the national push to grow oil and gas output in a sustainable way.
NNPC Ltd noted the project will also deepen Nigerian Content. Indigenous firms stand to gain more work in engineering, fabrication, marine services, offshore construction, logistics and day-to-day operations.
Beyond contracts, the development is expected to drive technology transfer, skills training, and growth in local fabrication, marine and engineering capacity.
The company restated its commitment to deliver the project safely, competitively and responsibly, while maximizing economic gains for the Federation and Nigerians.
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