Nigeria clears path for Bonga Southwest Aparo deepwater project

ABUJA, March 12, 2026 – The government of Nigeria has approved a fiscal incentive package to accelerate progress towards a positive FID on the Bonga Southwest Aparo (BSWA) deepwater project, the Nigerian National Petroleum Corporation (NNPC) announced on Tuesday.

President Bola Ahmed Tinubu approved a package that includes an enhanced production tax credit regime and a resolution of the 2021 dispute settlement agreement, following months of negotiation with the Nigeria Revenue Service, the Special Adviser to the President on Energy and Shell.

NNPC said the BSWA development would be the first FID on a Nigerian deepwater PSC asset since 2008. The project is estimated to unlock up to USD 20 billion in FDI inflows and create more than 5,000 direct and indirect jobs.

“This approval is a testament to the President’s leadership, NNPC’s disciplined execution and our ability to structure complex, bankable transactions that deliver value for Nigeria. For nearly two decades, the Bonga Southwest project remained stalled. Today, under President Tinubu’s reform-driven leadership and through NNPC’s sustained advocacy, we have broken that logjam,” said Bashir Bayo Ojulari, group CEO of NNPC.

Located approximately 120 kilometres offshore, the BSWA development is operated by Shell Nigeria Exploration and Production within a consortium comprising IOCs and NNPC. It is expected to deliver 150,000 bopd and 3.96 mcm (140 mcf) of gas per day when it comes on stream.

Photo courtesy of Shell

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