The Nigerian National Petroleum Company Limited (NNPC Ltd) announced Tuesday that President Bola Tinubu has approved a targeted fiscal incentive package to unlock the long-delayed Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project.
The approval is expected to attract around $20 billion in Foreign Direct Investment and revive large-scale offshore oil development in Nigeria.
The initiative resolves nearly two decades of fiscal and commercial bottlenecks that stalled the project.
Bonga Southwest Aparo, operated by Shell through its Nigerian deepwater subsidiary, is projected to produce 150,000 barrels of crude oil and 140 million standard cubic feet of gas daily once operational.
NNPC’s Group Chief Executive Officer, Bayo Ojulari, described the development as a breakthrough for Nigeria’s oil and gas sector, noting that the project’s revival reflects the government’s commitment to unlocking strategic investments.
“The milestone demonstrates what partnership, persistence, and policy clarity can achieve,” Ojulari said, highlighting NNPC’s collaboration with Shell, the Nigeria Revenue Service, and the Presidency in designing a commercially viable fiscal framework.
The approved package includes enhanced production tax credits and resolution of disputes from the 2021 settlement agreement, balancing investor interests with Nigeria’s long-term revenue goals.
Once the FID is taken, the multi-billion-dollar project is expected to generate over 5,000 jobs, strengthen Nigeria’s energy security, and trigger a new wave of offshore investments.
NNPC emphasised that the approval positions Nigeria as a competitive destination for global energy investment, particularly in capital-intensive deepwater projects.
