Shell and NNPC Sign Terms for $21 Billion Bonga Project
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On 24 August, the Nigerian National Petroleum Company (NNPC) and its OML 118 partners, including Shell Nigeria Exploration and Production Company (SNEPCo), Esso Exploration and Production Nigeria (Deepwater), and Nigerian Agip Exploration, signed an addendum to their production sharing contract and a dispute settlement agreement. This move formalized fiscal terms approved under President Bola Tinubu’s recent deep offshore incentives order, clearing a key commercial obstacle for the Bonga South West Aparo development. The project, which is projected to attract between $15 billion and $21 billion in investment, reached the end of its early engineering phase and will now move into detailed design. With peak production estimates of 175,000 barrels of oil and 140 million standard cubic feet of gas per day, the development serves as a significant attempt to boost Nigeria's crude output from deepwater sources.
Consequences
The project’s transition into the detailed design phase brings it closer to a final investment decision, which remains pending. As onshore and shallow-water fields mature, this development is expected to be a primary vehicle for Nigeria to address its recent crude production shortfalls through more secure, deepwater assets.
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