Nigeria has taken a significant step towards unlocking one of its most delayed deepwater projects, which has an estimated investment of $15 billion to $21 billion.

The development brings Nigeria a step closer to a Final Investment Decision (FID), 24 years after the discovery of the Bonga Southwest/Aparo oilfield,

The Nigerian National Petroleum Company Limited (NNPC Ltd) and contractor parties in OML 118, Shell Nigeria Exploration and Production Company Limited (SNEPCo), Esso Exploration and Production Nigeria (Deepwater) Limited, and Nigerian Agip Exploration Limited, yesterday, in Abuja signed addenda to the Production Sharing Contract (PSC) and the Dispute Settlement Agreement (DSA), paving the way for the project’s next development phase.

Discovered in 2001, Bonga Southwest/Aparo spans OML 118, OML 140 and OML 132 in Nigeria’s offshore Niger Delta.

Despite its substantial reserves, the project has stalled for over two decades because of commercial disputes, fiscal uncertainty, and shifting investment priorities among international oil companies.

In March this year, President Bola Tinubu approved incentives for the Bonga Southwest Aparo project. This comes amid a deepwater investment framework aimed at unlocking a segment where most international oil companies now mainly operate.

Tinubu had last week approved the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, designed to improve the competitiveness of Nigeria’s deepwater fiscal regime and revive long-delayed investments.

Once fully developed, Bonga Southwest/Aparo is expected to become Nigeria’s largest deepwater development, with projected peak production of about 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily.

Beyond boosting crude output, the project is expected to strengthen government revenues, increase foreign exchange earnings and create thousands of jobs across engineering, fabrication, offshore construction, logistics and operations.

NNPC Group Chief Executive Officer, Bashir Bayo Ojulari, described the agreement as evidence that recent fiscal reforms are beginning to translate into investment decisions.

The contractor parties also confirmed the completion of the project’s Pre-Front End Engineering Design phase, allowing it to progress into the FEED stage, subject to partner and regulatory approvals.

A preferred bidder has also been identified for the Floating Production Storage and Offloading vessel, although the Engineering, Procurement, Construction and Installation contract remains subject to further approvals.

The project arrives at a critical period for Nigeria’s oil sector. While the country possesses some of Africa’s largest deepwater reserves, investment has increasingly shifted to competing jurisdictions offering clearer fiscal terms and faster project approvals. Recent reforms under the Petroleum Industry Act and new offshore incentives appear aimed at reversing that trend.

If the project reaches FID as anticipated, it would signal renewed investor confidence in Nigeria’s offshore sector and mark the most significant deepwater investment commitment since the original Bonga field transformed the country’s offshore oil industry.