NNPC Advances $21bn Bonga Offshore Project Agreements

On Monday, the Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners signed agreements to advance the Bonga Southwest/Aparo project, estimated to attract $21 billion in investment. Located in Oil Mining Lease 118, the project is projected to achieve peak production of approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas per day.

The agreements executed include an Addendum to the OML 118 Production Sharing Contract and an Addendum to the Dispute Settlement Agreement, which implement new fiscal and commercial terms approved by the Federal Government. This development is crucial for Nigeria, which has faced challenges in attracting major investments in its deepwater petroleum sector.

The agreements reflect the Federal Government's recent reforms aimed at enhancing Nigeria's appeal for deepwater investment. President Bola Tinubu's approval of the Deep Offshore Oil and Gas Projects Incentives (Tax Remission) Order, 2026, is part of these reforms, designed to improve the competitiveness of Nigeria’s deepwater fiscal regime.