Nigeria’s state-owned oil company and its partners have signed agreements that move the proposed $15 billion-$21 billion Bonga Southwest/Aparo offshore project closer to a final investment decision.

New terms clear path for Bonga development

Nigerian National Petroleum Co. Ltd. and partners Shell Nigeria Exploration and Production Co. Ltd., Esso Exploration and Production Nigeria (Deepwater) Ltd. and Nigerian Agip Exploration Ltd. signed amendments to the OML 118 Production Sharing Contract and the Dispute Settlement Agreement.

The agreements give effect to new fiscal and commercial terms approved by the Federal Government for the deepwater development.

The milestone comes as Nigeria seeks to revive investment in its oil and gas industry after years of underinvestment and declining crude production. The country is also looking to attract capital into large offshore fields that can support government revenue, exports and foreign exchange earnings.

NNPC Chief Corporate Communications Officer Andy Odeh said the agreements mark a major step in advancing the Bonga Southwest/Aparo project toward a final investment decision.

The development follows President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, which is aimed at improving the competitiveness of Nigeria’s fiscal terms for deepwater projects.

Major investment for Nigeria’s oil sector

NNPC Group Chief Executive Officer Bayo Ojulari said the agreements show that recent government reforms are beginning to create a clearer path for major investments that had previously remained uncertain.

The partners have also completed the project’s Pre-Front End Engineering Design phase, paving the way for the more detailed Front End Engineering Design stage. With estimated lifetime investment of as much as $21 billion, Bonga Southwest/Aparo could become one of Nigeria’s largest oil and gas investments in years.

The project is expected to contribute to crude oil and gas production while generating government revenue and foreign exchange. It could also create business opportunities for Nigerian companies involved in engineering, fabrication, offshore construction, logistics and other oilfield services.

For Nigeria, the progress on Bonga Southwest/Aparo offers a test of whether new fiscal incentives can unlock the large-scale offshore investments needed to rebuild the country’s oil production base and strengthen its position as a major African energy producer.