NNPC gets presidential approval for $20bn FID on Bonga deepwater project

…expects project to boost crude production by150,000 bpd

President Bola Tinubu has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project. This is in furtherance of Government’s drive to attract strategic investments and accelerate sustainable economic growth.

The project according to NNPC, is estimated to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater production.

Announcing the President’s approval in a statement on Tuesday, Andy Odeh, the Chief Corporate Communications Officer, NNPC Limited, said that it followed months of intensive technical and commercial negotiations involving NNPC Limited as the Concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and Wael Sawan, CEO of Shell.

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According to Odeh, the approval represents the culmination of the President’s directive, issued during a courtesy visit by Wael Sawan, Shell CEO, to fast-track the enablers required to move this strategic national asset to FID.

He said, “It signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes.”

Ode further noted that the Bonga Southwest project would be the first FID on a Nigeria deepwater Production Sharing Contract asset since 2008, re-establishing Nigeria as a premier deepwater investment destination.

He added that the fiscal package approved by President Tinubu included an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement, creating a competitive framework that balances national value with investor returns.

“NNPC Limited, as Concessionaire, worked closely with SNEPCo and the broader contractor party to develop alternative fiscal solutions that address structural constraints while protecting Nigeria’s long-term interests. The approval was granted rigorous evaluation by the National Revenue Service and submission of recommendations to the Presidency.

“This milestone reinforces NNPC’s strategic pivot toward partnership-driven growth. By aligning with global majors like Shell and securing the enabling fiscal environment, NNPC Ltd is translating the President’s investment reform agenda into tangible outcomes—jobs, revenues, and energy security for Nigerians.

“With Presidential approval secured, NNPC Limited and its partners will now progress toward FID, triggering the multi-billion-dollar capital commitment that will transform Nigeria’s deepwater landscape and deliver enduring value to the nation”, he said.

He added that the Bonga Southwest Aparo project, operated by Shell with all IOCs in Nigeria as partners, would create over 5,000 direct and indirect jobs, and deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.

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Speaking on the development, Bashir Bayo Ojulari, the Group Chief Executive Officer of NNPC Limited, said “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. This is what partnership, persistence, and policy clarity can achieve.

“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence.”