ABUJA — In a move set to end nearly two decades of regulatory gridlock, President Bola Ahmed Tinubu has approved a strategic fiscal incentive package to greenlight the Bonga Southwest Aparo (BSWA) project. The decision is expected to trigger a massive $20 billion infusion of Foreign Direct Investment (FDI) into Nigeria’s offshore energy sector.
The approval, announced Tuesday by the Nigerian National Petroleum Company (NNPC) Limited, clears the final hurdles for a Final Investment Decision (FID) on the deepwater asset, which has remained stalled since the mid-2000s.
Breaking the 20-Year “Logjam”
Operated by Shell Nigeria Exploration and Production Company (SNEPCo) in partnership with NNPC and other international oil majors, the Bonga Southwest project represents Nigeria’s first major deepwater Production Sharing Contract (PSC) milestone since 2008.
The breakthrough follows months of high-level negotiations involving Shell CEO Wael Sawan, Presidential Energy Adviser Olu Verheijen, and the Federal Inland Revenue Service (FIRS).
The approved fiscal framework includes:
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Enhanced Production Tax Credits: Incentives designed to make the high-cost deepwater environment globally competitive.
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Dispute Resolution: The formal settlement of the 2021 agreement disputes, providing the legal clarity required by international lenders.
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Bankable Structuring: A refined revenue-sharing model that protects national interests while ensuring investor returns.
Economic Impact: Barrels, Billions, and Jobs
Once the project reaches completion, it is slated to become a cornerstone of Nigeria’s energy security and a primary driver of the “Renewed Hope” economic agenda.
Key Project Projections:
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Daily Output: Approximately 150,000 barrels of crude oil and 140 million standard cubic feet of gas.
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Employment: Generation of over 5,000 direct and indirect jobs across the Niger Delta and the broader oil and gas value chain.
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National Strategy: A major step toward the Federal Government’s goal of attracting $100 billion in new energy investments by 2030.
A Turning Point for Investor Confidence
“Today, we have broken the logjam,” stated Bayo Ojulari, GCEO of NNPC Limited. “This approval is a testament to the President’s leadership and our ability to structure complex, bankable transactions that deliver value for Nigeria.”
The Bonga Southwest field is located offshore in the Niger Delta, building on the legacy of the original Bonga field which revolutionized Nigeria’s deepwater production in 2005. Its revival signals a shift in global energy sentiment, suggesting that despite the energy transition, Nigeria’s deepwater basins remain some of the most attractive high-yield assets in Africa.
