Nigeria has taken another step toward unlocking up to $21 billion in potential investment in one of its largest offshore oil developments, as the government seeks to make deepwater projects more attractive to international oil companies.
The Nigerian National Petroleum Company Limited (NNPC Ltd) and partners including Shell, ExxonMobil and Eni signed amendments on August 24 to agreements governing the long-delayed Bonga South-West Aparo project, located in the OML 118 block offshore Nigeria.
The agreements give effect to new fiscal and commercial terms approved by the federal government. The measures follow President Bola Tinubu’s approval of the 2026 Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, aimed at improving the competitiveness of large offshore developments.
NNPC estimates that Bonga South-West Aparo could attract between $15 billion and $21 billion in investment over the life of the project. At peak production, the development is expected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.
The project has been under development consideration for years, making its progress significant for Nigeria’s efforts to revive investment in its deepwater sector. The latest agreements are intended to move the project closer to a Final Investment Decision, although the investment has not yet been fully committed.
The partners have also completed the project’s pre-front-end engineering design phase, while preparations for the next stage of engineering are advancing. A preferred bidder has reportedly been identified for the planned floating production, storage and offloading vessel, although a final contract award has not yet been made.
For Nigeria, the development could provide a significant boost to crude production, government revenues and foreign-exchange inflows. It could also generate opportunities for local companies involved in engineering, construction, logistics and offshore services.
The move is part of Abuja’s broader effort to reverse years of weak investment in the country’s oil industry by offering a more competitive and predictable fiscal framework for capital-intensive offshore projects.
If ultimately approved and developed, Bonga South-West Aparo would become one of Nigeria’s largest new deepwater oil projects, potentially strengthening the country’s position as a major African oil and gas producer.
