The agreements, signed at the NNPC Towers in Abuja, give effect to fiscal and commercial terms approved by the Federal Government and are expected to support the development of one of Nigeria’s largest planned deepwater projects.
The contractor parties include Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Limited and Nigerian Agip Exploration Limited.
Speaking at the signing ceremony, NNPC Ltd. Group Chief Executive Officer, Bashir Ojulari, said the agreements reflected the government’s commitment to creating a competitive, stable and attractive environment for large-scale deepwater investment.
Ojulari said the milestone followed President Bola Tinubu’s approval of the Deep Offshore Oil and Gas Projects Incentives Order, 2026, describing it as a key component of the government’s reforms to strengthen the competitiveness of Nigeria’s deepwater sector and attract new investment.
“The Production Sharing Contract and Dispute Settlement Agreement Addenda show the practical impact of these reforms in translating policy into project development,” he said.
According to him, BSWAp is projected to attract between $15 billion and $21 billion in investment over its lifespan, with peak production estimated at 175,000 barrels of oil per day and 14 million standard cubic feet, mmscfd, of gas per day.
Also Read: Tinubu signs off Bonga deepwater project
He said the project was expected to increase government revenue and foreign exchange earnings while creating opportunities for local content development, employment and businesses.
Ojulari said NNPC Ltd. would continue to work with the Federal Government, its partners and other stakeholders to ensure that the project delivered maximum value to the Federation and Nigerians.
The contractor parties also announced the successful completion of the project’s Pre-Front End Engineering Design, Pre-FEED, phase, describing it as an important step towards maturing the technical and commercial scope of the development and progressing to the FEED phase.
They said the transition to the FEED phase remained subject to applicable partner, assurance and governance requirements.
Following a competitive selection process, a bidder has also been identified as the preferred Floating Production Storage and Offloading, FPSO, contractor for the project.
However, any award of the FPSO Engineering, Procurement, Construction and Installation contract remains subject to the completion of applicable partner, regulatory, assurance and governance processes.
Once operational, BSWAp is expected to become one of Nigeria’s major new deepwater production hubs, contributing to national oil output and supporting the country’s ambition to sustainably increase oil and gas production.
The project is also expected to strengthen Nigerian content through increased contracting opportunities for indigenous companies, local fabrication, marine and engineering capabilities, technology transfer and skills development.
NAN
