President Bola Tinubu has approved a targeted fiscal incentive package to unlock the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater oil project, a development expected to attract approximately $20 billion in Foreign Direct Investment (FDI).
The statement from the Nigerian National Petroleum Company Limited (NNPC Ltd) confirmed the approval, designed to resolve fiscal and commercial bottlenecks that stalled the Shell-operated project for nearly two decades. Once fully operational, the BSWA development is projected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily.
The presidential approval followed months of intensive technical and commercial negotiations involving NNPC Ltd as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and Shell’s global leadership. It fulfills a directive from President Tinubu to fast-track the enablers for this strategic national asset.
This milestone represents the first deepwater FID on a Production Sharing Contract (PSC) asset in Nigeria since 2008. Bayo Ojulari, Group Chief Executive Officer of NNPC, described the breakthrough as a testament to the government’s reform-driven leadership and NNPC’s advocacy. “For nearly two decades, the Bonga Southwest project remained stalled. Today… we have broken that logjam,” he stated, emphasizing the partnership’s role in unlocking Nigeria’s hydrocarbon potential.
With presidential approval secured, NNPC and its partners will proceed toward a formal FID, triggering full-scale capital deployment for the offshore field’s development. The project is estimated to generate over 5,000 direct and indirect jobs during construction and operations.
Analysts note the decision could signal the beginning of a new cycle of offshore investments in Nigeria, as major oil companies increasingly seek stable fiscal environments for capital-intensive deepwater projects. The move underscores renewed confidence in Nigeria’s policy direction and its capacity to translate reform momentum into tangible investment outcomes within the global energy sector.
