Historic Breakthrough for Nigeria’s Deepwater Sector
His Excellency, President Bola Ahmed Tinubu, GCFR, has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID), on the Bonga Southwest Aparo (BSWA), deepwater project. The approval marks a major milestone in Nigeria’s ongoing efforts to attract strategic investments and accelerate sustainable economic growth.
The project is estimated to attract approximately $20 billion in Foreign Direct Investment (FDI), positioning Nigeria for a new era of deepwater oil and gas production.
Months of Strategic Engagement Deliver Results
The Presidential approval follows months of intensive technical and commercial negotiations involving NNPC Limited as concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO, Mr. Wael Sawan.
The decision also implements President Tinubu’s directive issued during a courtesy visit by Shell’s CEO, aimed at fast-tracking policy and fiscal enablers necessary to move this critical national asset toward FID.
This milestone signals renewed investor confidence in Nigeria’s policy direction and the administration’s commitment to translating reform momentum into tangible investment outcomes.
NNPC Leadership Hails Presidential Support
Speaking on the development, the Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, described the approval as a defining moment for Nigeria’s energy sector.
“This approval is a testament to the President’s leadership, NNPC’s disciplined execution, and our ability to structure complex, bankable transactions that deliver value for Nigeria,” Ojulari stated.
“For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam. This is what partnership, persistence, and policy clarity can achieve.”
He added that the milestone reinforces NNPC’s commitment to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation, and execution excellence.
First Deepwater FID in Over a Decade
The Bonga Southwest project will be the first Final Investment Decision on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing the country as a premier deepwater investment destination.
The fiscal package approved by President Tinubu includes an enhanced Production Tax Credit and resolution of issues related to the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.
NNPC Limited worked closely with Shell Nigeria Exploration and Production Company (SNEPCo), and the broader contractor group to develop fiscal solutions capable of addressing structural constraints while safeguarding Nigeria’s long-term interests. The approval followed rigorous evaluation by the National Revenue Service and submission of recommendations to the Presidency.
Jobs, Energy Security and Economic Impact
The Bonga Southwest Aparo project, operated by Shell with participation from all International Oil Companies (IOCs), in Nigeria as partners, is expected to deliver substantial economic benefits.
Upon completion, the project will:
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Create over 5,000 direct and indirect jobs
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Produce 150,000 barrels of crude oil per day
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Deliver 140 million standard cubic feet of gas per da
Next Step: Moving Toward Final Investment Decision
With Presidential approval secured, NNPC Limited and its partners will now advance toward the Final Investment Decision stage, unlocking the multi-billion-dollar capital commitment required to transform Nigeria’s deepwater production landscape and deliver enduring value for the nation.
About NNPC Limited
NNPC Limited is Nigeria’s national energy company, committed to driving sustainable energy development, maximising value from the nation’s hydrocarbon resources, and delivering long-term energy security for Nigeria.