NNPC, PARTNERS ADVANCE $21BN BONGA OFFSHORE PROJECT

The Nigerian National Petroleum Company Limited and its partners have signed key agreements to advance the development of the Bonga Southwest/Aparo deepwater project, which is expected to attract up to $21 billion in investment.

The agreements are designed to move the project in Oil Mining Lease 118 closer to a Final Investment Decision, marking a major step in efforts to unlock fresh investment in Nigeria’s deepwater oil and gas sector.

NNPC and the OML 118 contractor parties, including Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited, executed addenda to the Production Sharing Contract and Dispute Settlement Agreement.

The agreements give effect to revised fiscal and commercial terms approved by the Federal Government to improve the attractiveness of the project and encourage large-scale offshore investment.

NNPC Group Chief Executive Officer, Bashir Ojulari, said the development demonstrated the government’s commitment to creating a competitive and stable environment for deepwater investments.

The project is expected to generate significant economic benefits if developed, including increased crude oil production, government revenue and opportunities for Nigerian companies involved in engineering, fabrication, marine services and other areas of the oil and gas value chain.

The Bonga Southwest/Aparo development is projected to reach peak production of about 175,000 barrels of crude oil per day, alongside approximately 140 million standard cubic feet of gas per day.

The project is also expected to support technology transfer and skills development while increasing opportunities for indigenous contractors and service providers.

The renewed momentum comes as Nigeria seeks to reverse declining oil output and attract major investments into its deepwater petroleum industry.

Stakeholders said moving the project to FID would be an important milestone for Nigeria’s upstream sector and could strengthen the country’s position as a destination for large-scale offshore oil and gas investment.