NNPC and partners sign Bonga Southwest addenda
Analysis based on 10 articles · First reported Aug 24, 2026 · Last updated Aug 25, 2026
The signing of the addenda signals progress on a major deepwater project, potentially attracting billions in investment and boosting Nigeria's oil and gas production, which could positively impact the country's economy and energy sector. For the partner companies, the milestone de-risks the project and supports their deepwater portfolios, likely improving investor sentiment.
The NNPC Limited (NNPC Ltd) and the OML 118 Contractor Parties—Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited (NAE)—executed the Addendum to the OML 118 Production Sharing Contract (PSC) and the Addendum to the Dispute Settlement Agreement (DSA) on August 24, 2026. This milestone advances the deepwater Bonga Southwest/Aparo project (BSWAp) towards Final Investment Decision (FID). The agreements give effect to fiscal and commercial terms approved by the Federal Government, following President Bola Tinubu's approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026. BSWAp is expected to attract US$15-21 billion in investment and achieve peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day. The Contractor Parties also completed the Pre-Front End Engineering Design (Pre-FEED) phase and identified a preferred Floating Production Storage and Offloading (FPSO) contractor, subject to further approvals. The project is expected to boost Nigeria's oil and gas output, government revenues, foreign exchange earnings, local content, and employment.
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