President Bola Ahmed Tinubu has approved a production tax credit and other fiscal incentives aimed at fast-tracking the Final Investment Decision (FID) for the Bonga Southwest Aparo (BSWA) deepwater oil project, a development expected to unlock about $20 billion in investment.
The announcement was made by the Nigerian National Petroleum Company Limited (NNPC Ltd) through its spokesperson, Andy Odeh, who described the move as a major step toward boosting investor confidence and driving economic growth in Nigeria’s energy sector.
According to the statement, the incentives are designed to unlock the long-delayed BSWA project, positioning it as a key milestone in Nigeria’s efforts to attract large-scale investments and strengthen its oil and gas industry.
The approval follows a recent engagement between President Tinubu and executives of Shell Plc, during which the company signaled renewed interest in expanding its investments in Nigeria. Shell’s Chief Executive Officer, Wael Sawan, highlighted improved policy stability and leadership as factors boosting the company’s confidence in the country.
The Bonga field, Nigeria’s first deepwater oil project, began production in 2005 and is located about 120 kilometres off the Niger Delta coast. The proposed Bonga Southwest expansion is expected to significantly increase output and reinforce Nigeria’s position in deepwater oil production.
NNPC noted that the presidential approval followed months of negotiations involving key stakeholders, including the national oil company, fiscal authorities, and energy advisers. The process also addressed longstanding issues such as the 2021 dispute settlement agreement and the need for competitive investment terms.
NNPC’s Group Chief Executive Officer, Bashir Ojulari, described the development as a breakthrough after nearly two decades of delays, attributing the progress to sustained policy reforms and strategic collaboration.
Once approved at the FID stage, the project will mark Nigeria’s first deepwater investment decision in over a decade. It is expected to generate more than 5,000 jobs and produce approximately 150,000 barrels of crude oil per day, alongside significant gas output.
With the incentives now in place, NNPC and its partners are expected to move closer to finalizing the investment decision, potentially reshaping Nigeria’s offshore oil production and strengthening its long-term energy outlook.
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