President Bola Tinubu has approved a package of fiscal incentives to revive the long-stalled Bonga Southwest Aparo deepwater oil project, a move that could draw $20 billion in foreign investment.
The project is expected to mark the country’s first major offshore oil commitment since 2008.
The Nigerian National Petroleum Company Limited (NNPCL) announced the approval on Tuesday, crediting months of negotiations with stakeholders including the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy Olu Verheijen, and Shell plc CEO Wael Sawan.
NewsQuest reports that the project, operated by Shell Nigeria Exploration and Production Company in partnership with other international firms and NNPC, has languished for nearly 20 years amid regulatory hurdles and fiscal disputes.
In a statement, NNPCL Chief Corporate Communications Officer Andy Odeh hailed the decision as a “key step toward restoring investor confidence” in Nigeria’s deepwater assets.
He said the incentives include an enhanced production tax credit and resolution of a 2021 dispute settlement, balancing investor appeal with long-term government revenue.
NNPCL Group CEO Bayo Ojulari called it a “turning point,” praising President Tinubu’s “reform-driven leadership” and NNPC’s advocacy.
“For nearly two decades, the Bonga Southwest project remained stalled,” Ojulari said.
“Today… we have broken that logjam. This is what partnership, persistence, and policy clarity can achieve,” he added.
Located offshore in the Niger Delta, the project builds on the original Bonga field, which began producing in 2005.
Once launched, the project officials say it promises 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, alongside over 5,000 jobs.
Officials view it as a cornerstone of a push for $100 billion in energy investments by 2030, amid Nigeria’s historically rich deepwater basins like Erha and Agbami.
The approval also paves the way for a final investment decision, potentially reigniting interest in Nigeria, as Africa’s top oil producer – as global energy priorities shift.
