President Bola Tinubu has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision on the Bonga Southwest Aparo deepwater project.
The project is estimated to attract about $20 billion in foreign direct investment and position Nigeria for a new era of deepwater production.
The approval followed months of intensive technical and commercial negotiations involving NNPC Limited, the Nigeria Revenue Service, and the Special Adviser to the President on Energy.
Group Chief Executive Officer of NNPC Limited, Engr. Bashir Bayo Ojulari, stated that for nearly two decades, the Bonga Southwest project remained stalled.
He noted that under President Tinubu’s reform-driven leadership, the logjam has been broken, enabling the company to structure complex, bankable transactions that deliver value for Nigeria.
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The Bonga Southwest project will deliver 150,000 barrels per day of crude oil and 140 million standard cubic feet per day of gas upon completion.
The project, operated by Shell with all international oil companies in Nigeria as partners, will create over 5,000 direct and indirect jobs.
The fiscal package includes an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement.
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This creates a competitive framework that balances national value with investor returns, according to statements from the presidency.
The project will be the first Final Investment Decision on a Nigeria deepwater Production Sharing Contract asset since 2008.
The deepwater investment approval transforms Nigeria’s deepwater landscape and delivers enduring value to the nation.
