The Federal Government of Nigeria has given the green light to the Bonga Southwest Aparo project, a long-delayed deepwater oil development expected to attract around $20 billion in foreign direct investment. President Bola Tinubu approved a targeted fiscal incentive package aimed at unlocking the project, operated by Shell Nigeria Exploration and Production Company in partnership with a consortium of international oil companies and the Nigerian National Petroleum Company Limited (NNPC). The announcement marks a major step toward the project’s Final Investment Decision after nearly two decades of delays.
According to NNPC, the presidential approval followed months of negotiations among stakeholders, including Shell’s leadership and government energy advisors. The fiscal framework includes enhanced production tax credits and resolution of prior contractual disputes, creating a competitive investment environment while protecting Nigeria’s long-term revenue interests. The NNPC described the approval as pivotal in restoring investor confidence in the country’s deepwater petroleum assets.
NNPC’s Group CEO, Bayo Ojulari, called the approval a turning point for a project stalled for almost 20 years. He highlighted that the milestone underscores the government’s commitment to disciplined execution, policy clarity, and structured partnerships that can unlock Nigeria’s energy potential. The project is set to become the country’s first deepwater Production Sharing Contract asset to reach Final Investment Decision since 2008, signaling a potential resurgence of investor interest in offshore exploration.
Once operational, the Bonga Southwest Aparo project is expected to produce 150,000 barrels of crude oil and 140 million standard cubic feet of gas per day, while generating over 5,000 direct and indirect jobs across the oil and gas value chain. The development forms part of a broader government strategy to attract over $100 billion in oil and gas investment by 2030, with emphasis on deepwater exploration, gas projects, and energy infrastructure.
Located offshore in the Niger Delta, the project builds on the success of Nigeria’s original Bonga field, the country’s first deepwater development. With the latest presidential approval, Nigeria aims to reposition itself as a competitive destination for deepwater investments, balancing fiscal incentives and policy stability against global energy transition pressures. Analysts suggest this move could reshape the country’s upstream oil sector and reaffirm Nigeria’s role as a leading African oil producer.
source: punch