Tinubu approves incentives to unlock $20bn Bonga deepwater project

Tinubu approves incentives to unlock $20bn Bonga deepwater project

President Bola Ahmed Tinubu has approved a targeted fiscal incentive package aimed at unlocking the long-delayed Bonga Southwest Aparo Project, a development expected to attract about $20bn in foreign direct investment into Nigeria’s oil and gas sector.

President Bola Ahmed Tinubu

The approval, announced on Tuesday by Nigerian National Petroleum Company Limited, is expected to pave the way for the long-awaited Final Investment Decision on the offshore project, which has remained stalled for nearly two decades.

The Bonga South-West Aparo project is operated by Shell Nigeria Exploration and Production Company, a subsidiary of Shell plc, in partnership with other international oil companies and the national oil firm.

According to NNPC, the presidential approval followed months of negotiations among key stakeholders, including the Federal Inland Revenue Service, the Special Adviser to the President on Energy, Olu Verheijen, and the Chief Executive Officer of Shell plc, Wael Sawan.

In a statement signed by the Chief Corporate Communications Officer of NNPC Limited, Andy Odeh, the company described the decision as a key step toward restoring investor confidence in Nigeria’s deepwater petroleum assets.

The fiscal framework approved by the President includes an enhanced production tax credit and the resolution of the 2021 dispute settlement agreement, measures designed to create a competitive environment for investors while safeguarding Nigeria’s long-term revenue interests.

Reacting to the development, the Group Chief Executive Officer of NNPC Limited, Bayo Ojulari, said the approval marked a turning point for a project that had been stalled for nearly 20 years.

He 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.”

He added that the development reinforces NNPC’s commitment to unlocking Nigeria’s vast energy potential through strategic partnerships and innovation.

According to NNPC, the Bonga Southwest Aparo project will become Nigeria’s first Final Investment Decision on a deepwater Production Sharing Contract asset since 2008, potentially signalling renewed investor interest in offshore exploration.

Once operational, the project is expected to produce about 150,000 barrels of crude oil per day and 140 million standard cubic feet of gas daily, significantly boosting Nigeria’s hydrocarbon output.

It is also projected to generate more than 5,000 direct and indirect jobs across the oil and gas value chain.

The project forms part of the Federal Government’s broader strategy to attract large-scale investment into Nigeria’s energy sector, with officials targeting over $100bn in new investments by 2030, particularly in deepwater exploration, gas development and energy infrastructure