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The Nigerian National Petroleum Company Limited (NNPC Ltd) and partners under OML 118 have signed key agreements to advance the Bonga South-West/Aparo (BSWAp) deepwater project towards a Final Investment Decision (FID).
The agreements include addenda to the OML 118 Production Sharing Contract (PSC) and the Dispute Settlement Agreement (DSA). The participating contractors are Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE).
The project is expected to attract between $15bn and $21bn in investment over its lifespan and could become one of Nigeria’s largest deepwater developments. At peak production, it is projected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
NNPC said the agreements give effect to fiscal and commercial terms approved by the Federal Government to make Nigeria’s deepwater sector more competitive and attractive to investors. The project has also completed its Pre-FEED phase, while a preferred FPSO contractor has been identified, subject to the necessary approvals.
The development is expected to boost oil and gas production, government revenue, foreign exchange earnings, employment and opportunities for Nigerian contractors and suppliers.
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