NNPC secures breakthrough on Bonga Southwest Aparo, unlocking $20B investment, 150,000 bpd production, and over 5,000 jobs in Nigeria

The Nigerian National Petroleum Company Limited (NNPC Ltd) has obtained presidential approval for a targeted fiscal incentive package to unlock the long-delayed Final Investment Decision on the Bonga Southwest Aparo deepwater project.

Also read: TikToker Salo shot and robbed in Lekki, Lagos

The approval, granted by President Bola Ahmed Tinubu, is expected to attract $20 billion in foreign direct investment and rejuvenate Nigeria’s deepwater oil sector.

The Bonga Southwest Aparo project, operated by Shell Nigeria Exploration and Production Company (SNEPCo), is projected to produce approximately 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas once fully operational.

NNPC Group Chief Executive Officer Bayo Ojulari described the development as a “major breakthrough” for the nation’s oil and gas industry, noting the project had been stalled for nearly two decades due to fiscal and commercial 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.

“Under President Tinubu’s reform-driven leadership, we have broken that logjam. This is what partnership, persistence, and policy clarity can achieve.”

The presidential approval introduces an enhanced Production Tax Credit and resolves issues arising from a 2021 dispute settlement agreement, ensuring the project remains commercially viable while protecting Nigeria’s long-term revenue interests.

NNPC expects the development to generate over 5,000 direct and indirect jobs during construction and operations.

The milestone marks the first deepwater Final Investment Decision on a Production Sharing Contract asset in Nigeria since 2008, signalling renewed confidence among international investors in the country’s energy policy framework.

Months of technical and commercial negotiations preceded the approval, involving NNPC as the concessionaire, the Nigeria Revenue Service, the Special Adviser to the President on Energy Olu Verheijen, and Shell CEO Wael Sawan.

The collaboration emphasises the importance of policy clarity and strategic partnerships in unlocking Nigeria’s offshore hydrocarbon potential.

With the fiscal package now secured, NNPC and its partners are poised to proceed with the formal Final Investment Decision, triggering full-scale capital deployment.

Also read: Reps back NNPC stake in Dangote Refinery as positive reform

Analysts anticipate that the multi-billion-dollar project will transform Nigeria’s deepwater production landscape, attract further international investment, and strengthen the nation’s energy security.