Nigeria Approves Bonga Southwest Project

President Bola Tinubu has approved a targeted fiscal incentive package to unlock the Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater project in Nigeria. This approval, announced by the NNPC (NNPC) Limited, is expected to attract approximately $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater oil production. The project, operated by Shell plc through its subsidiary Shell plc, has been stalled for nearly two decades due to fiscal and commercial uncertainties. The approved fiscal package includes an enhanced Production Tax Credit and the resolution of a 2021 dispute settlement agreement, creating a competitive framework for investors. Key stakeholders involved in the negotiations included NNPC as the concessionaire, Nigeria — Nigeria Revenue Service, Special Adviser to the President on Energy Olu Arowolo-Verheijen, and Shell plc CEO Wael Sawan. Bashir Bayo Ojulari, Group Chief Executive Officer of NNPC, emphasized that this milestone reflects President Bola Tinubu's leadership and NNPC's ability to structure complex transactions. The Bonga Southwest Aparo project is set to be Nigeria's first deepwater Production Sharing Contract asset to reach FID since 2008, and it is projected to produce 150,000 barrels of crude oil and 140 million standard cubic feet of gas daily, while creating over 5,000 direct and indirect jobs.