President Bola Ahmed Tinubu has approved a fiscal incentive package to revive the long-delayed Bonga Southwest Aparo deepwater project, a move expected to attract about $20bn in foreign investment into Nigeria’s oil and gas sector.
The development was announced by the Nigerian National Petroleum Company Limited (NNPC Ltd) on Tuesday, noting that the approval will enable the long-awaited Final Investment Decision on the offshore project.
The project is operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell plc, in partnership with other international oil companies.
According to NNPC, the fiscal framework includes an enhanced production tax credit and the resolution of the 2021 dispute settlement agreement, measures aimed at improving Nigeria’s competitiveness in deepwater investments.
NNPC’s Group Chief Executive Officer, Bayo Ojulari, described the approval as a breakthrough for a project that had been stalled for nearly two decades.
Once operational, the Bonga Southwest Aparo project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, while generating more than 5,000 direct and indirect jobs.
NNPC added that the project would become Nigeria’s first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008, potentially restoring investor confidence in the country’s offshore petroleum sector.
The approval aligns with the Federal Government’s broader strategy to attract over $100bn in new oil and gas investments by 2030, particularly under reforms introduced through the Petroleum Industry Act.
ADVERTISEMENTS
