The Nigerian National Petroleum Company Limited NNPC (NNPC Ltd) Tuesday announced that it had secured presidential approval for a targeted fiscal incentive package aimed at unlocking the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
The national oil company, in a statement in Abuja by its spokesman, Andy Odeh, stressed that the development is expected to attract about $20 billion in Foreign Direct Investment (FDI) and revive large-scale offshore oil investments in the country.
The approval, granted by President Bola Tinubu, it said, is designed to resolve long-standing fiscal and commercial bottlenecks that stalled the project for nearly two decades and pave the way for a major expansion of Nigeria’s deepwater oil production.
The Bonga Southwest Aparo development, operated by Shell through its Nigerian deepwater subsidiary, is expected to deliver about 150,000 barrels of crude oil per day and 140 million standard cubic feet (Scf) of gas daily once fully operational.
According to the statement, the presidential approval followed months of technical and commercial engagements involving the national oil company, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the global leadership of Shell.
“His Excellency, President Bola Ahmed Tinubu, has approved a targeted fiscal incentive designed to unlock the long awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, marking a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth. The project is estimated to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater production.
“The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO Mr. Wael Sawan,” it stated.
According to the statement, it represents the culmination of the President’s directive, issued during a courtesy visit by Shell CEO, Sawan, to fast-track the enablers required to move this strategic national asset to FID. Besides, the national oil company said it signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes.
The NNPC said the approval represented a significant milestone in Nigeria’s effort to reposition itself as a competitive destination for global energy investment, particularly in the capital-intensive deepwater segment.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the development as a major breakthrough for the country’s oil and gas sector.
He noted that the project had remained stalled for almost two decades due to fiscal and commercial uncertainties but said the latest approval reflected the government’s commitment to unlocking strategic investments.
Ojulari added that the milestone underscored the company’s commitment to leveraging partnerships with international oil companies to unlock Nigeria’s vast hydrocarbon potential.
“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. 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.
“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence,” the NNPC GCEO stressed.
The Bonga Southwest Aparo project will become the first deepwater final investment decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008, signalling renewed confidence among international investors in the country’s policy environment.
Central to the breakthrough is the fiscal package approved by the President, which includes an enhanced Production Tax Credit as well as the resolution of issues arising from the 2021 dispute settlement agreement between the government and contractors.
NNPC said the revised fiscal framework was designed to strike a balance between protecting Nigeria’s long-term revenue interests and ensuring the project remains commercially viable for investors.
As concessionaire, the national oil company said it worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor parties to design alternative fiscal structures capable of addressing structural challenges that had hindered progress on the project.
The proposal subsequently underwent evaluation by the NRS 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, particularly in high-capital offshore developments that require collaboration between the national oil company and global energy majors.
The company added that aligning policy reforms with investor expectations is essential to unlocking large-scale investments capable of generating jobs, boosting government revenues and strengthening Nigeria’s long-term energy security.
Once the final investment decision is taken by the project partners, the multi-billion-dollar development is expected to transform Nigeria’s deepwaterproduction profile while creating significant economic benefits.
NNPC estimates that the project will generate over 5,000 direct and indirect jobs during construction and operations. It could also signal the beginning of a new cycle of offshore investments in Nigeria, especially as global oil companies increasingly seek stable fiscal environments before committing capital to large deepwater projects.
With presidential approval now secured, NNPC and its partners are expected to move toward the formal FID, which would trigger the full-scale capital deployment required to develop the offshore field.
Emmanuel Addeh, Peter Uzoho
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