NNPC, partners sign agreements for $21bn Bonga Southwest project

The Nigerian National Petroleum Company (NNPC) Limited and its partners on Oil Mining Lease 118 have signed key commercial agreements for the Bonga Southwest/Aparo deepwater project, a move expected to accelerate the project towards a Final Investment Decision and unlock investments estimated at up to $21 billion.

The Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, announced on Monday that the company, alongside Shell Nigeria Exploration and Production Company, Esso Exploration and Production Nigeria, and Nigerian Agip Exploration, had executed the Production Sharing Contract and Dispute Settlement Agreement addenda for the project.

Ojulari described the milestone as a significant step in harnessing Nigeria’s vast deepwater resources, saying the development would deliver far-reaching economic benefits beyond crude oil production.

According to him, the Bonga Southwest/Aparo project has the potential to attract between $15 billion and $21 billion in investments, produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily, while creating jobs for Nigerians and boosting local content across the oil and gas value chain.

He added that the project would strengthen domestic supply chains and generate substantial revenue for the country, reinforcing Nigeria’s position as a leading deepwater producer.

Ojulari commended President Bola Tinubu for signing the 2026 Deep Offshore Incentives Order, which he said had created a more attractive investment environment for offshore projects.

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He also expressed appreciation to industry regulators, the contractor parties and the various technical teams involved in advancing the project.

The NNPC boss wrote on X: “Today is for everyone who believes in Nigeria’s deepwater potential.

“NNPC Ltd and our OML 118 contractor parties—Shell SNEPCo, Esso, and NAE—have executed the PSC & DSA addenda for Bonga Southwest/Aparo, moving us closer to FID.

“This is about more than barrels.

“It’s about: Up to $15B–$21B in potential investment, 175 kbopd oil + 140 mmscfd gas, Nigerian jobs and local content creation, Stronger supply chains, Real revenue for our nation.”

The Bonga Southwest/Aparo project is one of Nigeria’s largest undeveloped deepwater assets and is expected to play a key role in increasing the country’s oil and gas production while driving economic growth.