Nigeria’s long-awaited Bonga Southwest/Aparo deepwater oil project has moved a major step closer to reality, with agreements signed between the Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners.
The agreements could pave the way for billions of dollars in fresh investment and significantly increase Nigeria’s future oil and gas production.
NNPC Ltd and the OML 118 contractor parties — Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE) — signed two addenda covering the Production Sharing Contract (PSC) and Dispute Settlement Agreement.
The move gives effect to fiscal and commercial terms approved by the Federal Government and is expected to push the project closer to a Final Investment Decision (FID).
According to NNPC, the agreements followed President Bola Ahmed Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026.
The government says the reforms are designed to make Nigeria’s deepwater sector more competitive and encourage major international investments.
And the numbers behind Bonga Southwest are significant.
The project could attract between $15 billion and $21 billion in investment over its lifetime. At peak production, it is expected to produce around 175,000 barrels of oil per day, alongside approximately 140 million standard cubic feet of gas per day.
If delivered as planned, the project could boost government revenue, foreign exchange earnings and national oil production while creating thousands of opportunities for Nigerian businesses and workers.
NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, said the development shows that government reforms can translate into actual investment and major energy projects.
The project has also completed its Pre-Front End Engineering Design (Pre-FEED) stage. This means the technical and commercial planning has advanced and the project can now move toward the FEED stage, subject to required approvals.
A preferred contractor has also been identified for the project’s Floating Production Storage and Offloading (FPSO) facility.
However, the final FPSO contract has not yet been awarded. It remains subject to regulatory, partner and governance approvals.
For Nigeria, Bonga Southwest could become one of the country’s biggest new deepwater production hubs.
Beyond crude oil, the project is expected to create opportunities in engineering, fabrication, marine services, logistics and offshore construction.
It could also strengthen local content by giving Nigerian companies more access to contracts, technology transfer and skills development.
With the project now moving closer to FID, attention will shift to whether the agreements, engineering work and approvals can translate into actual construction and production.
If completed successfully, Bonga Southwest could become a major new source of oil, investment and economic opportunities for Nigeria.
