NNPC Secures Presidential Approval for $20 Billion Bonga Southwest Deepwater Project
Nigeria’s state-owned oil firm, NNPC Limited, has received President Bola Ahmed Tinubu’s final approval for a $20 billion final investment decision (FID) on the Bonga Southwest Aparo deepwater project, a landmark development expected to significantly boost the nation’s offshore oil production.
The approval, announced by NNPC spokesperson John Odey on Tuesday, greenlights a major expansion of the existing Bonga field. The project is projected to attract approximately $20 billion in foreign direct investment and is positioned to enhance Nigeria’s deepwater output capacity.
This milestone follows an extended period of complex negotiations. The discussions involved NNPC Limited as the project concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Ms. Olu Verheijen, and the Chief Executive Officer of Shell, Mr. Wael Sawan. Shell operates the Bonga field through its subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC).
Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, linked the achievement directly to federal government leadership. “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,” he stated. Ojulari noted that the project had been stalled for nearly two decades, adding, “Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam.”
The Bonga Southwest Aparo project represents a critical component in Nigeria’s strategy to revitalize its upstream oil and gas sector. Deepwater developments like this are essential for reversing production declines and attracting the substantial capital required for frontier exploration. The final investment decision signals improved confidence in Nigeria’s fiscal and regulatory environment following recent industry reforms championed by the Tinubu administration.
With presidential approval secured, the project will now move into its execution phase, involving detailed engineering, procurement, and construction. This phase is expected to create substantial employment and contract opportunities for Nigerian companies and professionals, aligning with objectives for local content development and economic diversification.
The successful conclusion of this $20 billion deal is widely viewed as a pivotal step in unlocking Nigeria’s vast deepwater potential. It sets a precedent for future large-scale partnerships between NNPC and international oil companies, reinforcing the national oil company’s evolving role as a facilitator and commercial partner rather than solely a regulator. The project’s progression will be closely monitored as a key indicator of the sector’s recovery and its ability to deliver on promises of increased government revenue and national energy security.
