- President Bola Ahmed Tinubu has approved a targeted fiscal incentive package to jumpstart the long-delayed Bonga Southwest Aparo (BSWA) project.
- The move is set to attract approximately $20bn in Foreign Direct Investment (FDI) and marks the first deepwater Final Investment Decision (FID) on a Production Sharing Contract since 2008.
- Once operational, the project will add 150,000 barrels of crude oil and 140 million standard cubic feet of gas per day to Nigeria’s production.
President Bola Ahmed Tinubu has approved a comprehensive fiscal incentive package designed to unlock the Bonga Southwest Aparo (BSWA) deepwater project.
Eko Hot Blog reports that he offshore development, operated by Shell Nigeria Exploration and Production Company (SNEPCo), has remained stalled for nearly two decades due to regulatory hurdles and investment disputes.
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The Nigerian National Petroleum Company Limited (NNPC) announced on Tuesday that the presidential approval followed intensive negotiations involving the Federal Inland Revenue Service (FIRS), the Special Adviser to the President on Energy, Olu Verheijen, and Shell’s global CEO, Wael Sawan.
The newly approved framework includes an enhanced production tax credit and the final resolution of the 2021 dispute settlement agreement.
These measures are specifically tailored to make Nigeria’s deepwater assets globally competitive while securing the nation’s long-term revenue.
Bayo Ojulari, the Group Chief Executive Officer of NNPC Limited, described the approval as a “turning point” for the industry.
“For nearly two decades, the Bonga Southwest project remained stalled.
Today, under President Tinubu’s reform-driven leadership, we have broken that logjam,” Ojulari said, attributing the success to “policy clarity and disciplined execution.”
The BSWA project is a cornerstone of the Federal Government’s ambitious goal to attract over $100bn in new energy investments by 2030.
Beyond the boost to hydrocarbon output, the project is projected to create more than 5,000 direct and indirect jobs across the oil and gas value chain.
The Bonga field, located in the deep waters of the Niger Delta, has been a flagship of Nigerian production since 2005.
The Southwest Aparo expansion will build on this infrastructure, signaling a renewed appetite for offshore exploration that has slowed in recent years.
With the fiscal logjam cleared, NNPC and its international partners are expected to move swiftly toward the Final Investment Decision (FID), triggering the multi-billion-dollar capital expenditure required to bring the field online.
