NNPCL: $20bn Final Investment Decision on Bonga deepwater project for economic sustainability

*President Bola Ahmed Tinubu’s approval of Final Investment Decision on Bonga Southwest Aparo deepwater project is expected to attract $20 billion in Foreign Direct Investment, and position for a new era of deepwater production

Gbenga Kayode | ConsumerConnect

Nigeria’s Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project has been described as a milestone in the country’s efforts at attracting strategic investments and accelerating sustainable economic growth.

ConsumerConnect reports President Bola Ahmed Tinubu, GCFR, recently approved a targeted fiscal incentive, to unlock the much-expected Final Investment Decision.

The NNPCL said the project estimated to attract about $20 billion in Foreign Direct Investment (FDI), would position Nigeria for a new era of deepwater production.

The statement oil firm also disclosed the Presidential approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, Nigeria Revenue Service (NRS), Olu Arowolo-Verheijen, Special Adviser to the President on Energy, and Mr. Wael Sawan, Shell CEO.

According to NNPCL, the move represented the culmination of Tinubu’s directive, issued during a courtesy visit by Shell CEO, Mr. Wael Sawan.

The effort is to fast-track the enablers required to move this strategic national asset to FID, stated the Company.

It further explained that the development mirrored renewed confidence in Nigeria’s policy direction, and the country’s resolve to translate reform momentum into tangible investment outcomes.

FID approval is testament to Tinubu’s leadership, says Ojulari, GCEO

Speaking on the attainment, Engr. Bashir Bayo Ojulari, Group Chief Executive Officer (GCEO) of NNPC Limited, stated: “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.

“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.”

Engr. Ojulari said: “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.”

The GCEO, in a recent statement by Andy Odeh, Chief Corporate Communications Officer at NNPC Limited, in Abuja, FCT, affirmed 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 equally noted the fiscal package approved by President Tinubu included an enhanced Production Tax Credit and resolution of the 2021 dispute settlement agreement.

Ojulari explained the development created a competitive framework that balances national value with investor returns.

The NNPCL Chief Executive said the state oil company, as a 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.

According to him, the approval was granted rigorous evaluation by the Nigeria Revenue Service, and submission of recommendations to the Presidency.

The Company said the milestone reinforced NNPC’s strategic pivot toward partnership-driven growth.

It stated that by aligning with global majors like Shell, and securing the enabling fiscal environment, NNPC Limited is translating the President’s investment reform agenda into tangible outcomes.

These outcomes include job opportunities, revenues, and energy security for Nigerian consumers.

It averred that with Presidential approval secured, NNPC Limited and its partners then would progress towards FID, triggering the multi-billion-Dollar capital commitment that will transform Nigeria’s deepwater landscape and deliver enduring value to the event.

The NNPC Limited assured Nigerians 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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