The Nigerian National Petroleum Company Limited (NNPC Ltd) has secured presidential approval for a targeted fiscal incentive package aimed at unlocking the long-delayed Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project, a development expected to attract about $20 billion in foreign direct investment (FDI).
NNPC disclosed this in a statement issued in Abuja by its spokesperson, Andy Odeh, noting that the approval by President Bola Tinubu is designed to resolve longstanding fiscal and commercial challenges that have stalled the project for nearly two decades.
The Bonga Southwest Aparo project, operated by Shell Nigeria Exploration and Production Company (SNEPCo), is projected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily once it becomes operational. The development is also expected to create over 5,000 direct and indirect jobs during construction and operations.
According to the statement, the presidential approval followed months of technical and commercial engagements involving NNPC, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the global leadership of Shell.
NNPC said the approval represents a major step in the federal government’s efforts to unlock strategic energy investments and reposition Nigeria as a competitive destination for global capital in the deepwater oil segment.
The statement noted that the move also implements the president’s directive issued during a recent engagement with Shell CEO, Wael Sawan, aimed at accelerating the policy and fiscal frameworks needed to move the project to the final investment stage.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the development as a major breakthrough for Nigeria’s oil and gas industry, noting that the project had remained stalled for years due to fiscal uncertainties.
“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 said.
“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,” he added.
NNPC explained that the fiscal package approved by the president includes an enhanced Production Tax Credit and the resolution of issues arising from the 2021 dispute settlement agreement between the government and contractors.
The revised fiscal framework, according to the company, was designed to balance Nigeria’s long-term revenue interests with the need to ensure the project remains commercially viable for investors.
As concessionaire, NNPC said it worked closely with SNEPCo and other contractor parties to develop alternative fiscal structures capable of addressing the structural bottlenecks that had delayed the project.
The proposal was subsequently reviewed by the Nigeria Revenue Service before recommendations were forwarded to the presidency for final approval.
NNPC noted that the breakthrough aligns with its broader strategy of pursuing partnership-driven growth in capital-intensive offshore developments while ensuring policy reforms support investor confidence.
The Bonga Southwest Aparo development is expected to become the first deepwater final investment decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008, signalling renewed confidence in the country’s investment climate.
Once the project partners take the formal FID, the multi-billion-dollar development is expected to significantly expand Nigeria’s deepwater oil output while boosting government revenues, creating thousands of jobs, and strengthening the country’s long-term energy security.
