President Bola Ahmed Tinubu has approved a new fiscal incentive package to help push the long-delayed Bonga Southwest Aparo (BSWA) deepwater oil project toward a final investment decision (FID).
The announcement came Tuesday from the Nigerian National Petroleum Company Limited (NNPC).
The government said the approval followed months of talks involving the presidency, the Federal Inland Revenue Service, and energy partners including Shell.
The package includes an improved production tax credit system and the resolution of a 2021 dispute settlement agreement tied to the project.
Officials believe the step could unlock massive foreign investment and revive one of Nigeria’s largest offshore developments that has remained stalled for years.
“This approval is a testament to the President’s leadership and our ability to structure complex, bankable transactions that deliver value for Nigeria,” said Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC.
“For nearly two decades, the Bonga Southwest project remained stalled. Today we have broken that logjam,” he said in remarks reported by several energy news platforms.
NNPC said the BSWA project could attract as much as $20 billion in foreign direct investment and create more than 5,000 direct and indirect jobs across the oil and gas sector.
Deepwater Project Could Boost Oil Output
The Bonga Southwest Aparo field lies about 120 kilometers offshore Nigeria in deep waters. It will be operated by Shell Nigeria Exploration and Production Company in partnership with international oil companies and NNPC.
The project is expected to produce around 150,000 barrels of oil per day when operations begin. It could also deliver about 3.96 million cubic meters of gas daily, equal to roughly 140 million cubic feet.
NNPC said the project would be the first final investment decision on a Nigerian deepwater production sharing contract asset since 2008.
It is believed the decision could send a strong signal to global investors about renewed confidence in Nigeria’s oil sector.
Energy reports from industry platforms noted that government approvals and fiscal incentives were key conditions investors had been waiting for before committing funds to the offshore development.
If the final investment decision proceeds, the Bonga Southwest Aparo project could become one of the largest offshore oil investments in Nigeria in nearly two decades.
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