The Nigerian National Petroleum Company Limited (NNPC Ltd) and its partners have executed addenda to the OML 118 Production Sharing Contract (PSC) and Development and Services Agreement (DSA), marking a significant step towards advancing the Bonga South West/Aparo Project (BSWAP).
The agreements were executed at the NNPC Towers in Abuja, bringing together senior executives from NNPC Ltd, Shell, Esso, and other participating companies involved in the offshore development.
Those present included NNPC Ltd Group Chief Executive Officer, Engr. Bashir Bayo Ojulari; Executive Vice President and Country Chair of Shell Companies in Nigeria, Elohor Aiboni; Managing Director of Esso, Jagir Baxi; Managing Director of Shell Nigeria Exploration and Production Company (SNEPCO), Ronald Adams; and Managing Director of Nigerian Agip Exploration (NAE), Maurizio Pinna.
The signing represents another important development for a project that has attracted attention because of its potential contribution to Nigeria’s offshore oil production and broader energy industry.
Agreement Supports BSWAP Development
The execution of the addenda is expected to provide an updated contractual framework for moving the Bonga South West/Aparo Project forward.
Furthermore, agreements governing major oil and gas developments provide the commercial and operational foundation required for companies to commit significant capital to complex projects.
The BSWAP project involves offshore oil and gas resources that require advanced technology, substantial investment, specialised expertise, and long-term planning.
By updating the relevant agreements, the parties are expected to strengthen the foundation for progressing the project towards further development and eventual production.
NNPC Strengthens Partnership With International Operators
The agreement also highlights the continued importance of partnerships between NNPC Ltd and international energy companies in developing Nigeria’s petroleum resources.
Furthermore, Shell and its associated companies have maintained a significant presence in Nigeria’s oil and gas industry, particularly in deepwater exploration and production.
Such partnerships can provide access to advanced technology and technical expertise while supporting large-scale capital investment in projects that may be difficult to develop without substantial financial and operational capacity.
The participation of senior executives from the companies demonstrates the strategic importance attached to the agreements.
Potential Benefits for Nigeria
The advancement of BSWAP could have wider implications for Nigeria’s energy sector and economy.
Furthermore, successful development of major offshore projects can generate government revenue through taxes, royalties, contractual payments, and other petroleum-related income.
Large projects can also support employment.
They can create opportunities for Nigerian contractors.
They can increase demand for specialised services.
They can contribute to technology and skills development within the domestic oil and gas industry.
The project could therefore provide benefits extending beyond oil production itself.
Supporting Energy Security
Nigeria continues to seek greater stability in domestic energy supply while maintaining its position as a major oil-producing country.
Furthermore, developing new offshore resources could support efforts to sustain crude oil production as the country manages ageing fields, declining output from some assets, and changing investment conditions within the global energy industry.
New production can strengthen supply.
Higher output can support export earnings.
Additional investment can improve sector confidence.
For these reasons, projects such as BSWAP remain strategically important to Nigeria’s petroleum industry.
Investment and Regulatory Stability
Major offshore developments require long-term investment commitments, making contractual certainty an important consideration for investors.
Furthermore, oil and gas projects can take years to progress from agreements and investment decisions through engineering, construction, drilling, commissioning, and production.
A stable commercial framework can therefore help companies plan their investments and manage project risks.
The execution of the addenda could provide greater clarity for the participating parties as they work towards advancing the project.
Local Content Opportunities
The development of a major offshore project could also create opportunities for Nigerian companies participating in the petroleum value chain.
Furthermore, local contractors and service providers can potentially benefit from demand for engineering, logistics, fabrication, marine services, maintenance, transportation, and other specialised activities.
Greater local participation can increase the economic value retained within Nigeria.
It can also support the development of technical skills and strengthen the capacity of domestic energy companies.
Looking Ahead
The execution of the addenda to the OML 118 PSC and DSA agreements represents an important milestone in the efforts to advance the Bonga South West/Aparo Project.
With senior representatives from NNPC Ltd, Shell, Esso, SNEPCO, and NAE participating in the agreement, the development demonstrates continued collaboration between Nigeria’s national oil company and international energy partners.
The next stages will require sustained investment, technical execution, regulatory coordination, and effective project management to translate the agreements into actual offshore development and production.
Ultimately, the renewed contractual framework provides an important platform for advancing BSWAP while creating the potential for increased investment, oil production, government revenue, local-content opportunities, and stronger long-term contributions to Nigeria’s energy sector.
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