President Bola Tinubu has approved a fiscal incentive package created to kick-start the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
This was made known in a statement by the Nigerian National Petroleum Company Limited (NNPCL), stating that it is projected to attract about $20 billion in Foreign Direct Investment (FDI).
The statement reads as follows: “His Excellency, President Bola Ahmed Tinubu, has approved a targeted fiscal incentive designed to unlock the long-awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, marking a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth. The project is estimated to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater production.
“The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO, Mr. Wael Sawan.”
In his response, the NNPCL’s Group Chief Executive Officer, Engr. Bashir Bayo Ojulari, said, “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. Today, 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.
“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.”
According to reports, the BSWA deepwater project is the first deepwater final investment decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008; it is projected to produce 150,000 barrels of crude oil per day and is also projected to generate about 5,000 direct and indirect jobs from the construction to operation phases.
More details later.