The Nigerian National Petroleum Company Limited and its partners have taken another major step towards developing the Bonga South West/Aparo deepwater project, which could attract between $15 billion and $21 billion in investment.

NNPC and the contractors under Oil Mining Lease 118 — Shell Nigeria Exploration and Production Company, Esso Exploration and Production Nigeria (Deepwater) Limited and Nigerian Agip Exploration Limited — signed amendments to the OML 118 Production Sharing Contract and Dispute Settlement Agreement on Monday.

The agreements give effect to fiscal and commercial terms approved by the Federal Government and are expected to help move the project closer to a Final Investment Decision.

According to NNPC spokesperson Andy Adeh, the project is projected to produce about 175,000 barrels of oil per day at peak, alongside 140 million standard cubic feet of gas daily.

The company said the development could boost government revenue, foreign exchange earnings, employment and opportunities for Nigerian businesses involved in engineering, fabrication, logistics, offshore construction and other services.

The partners have also completed the pre-front-end engineering design phase, bringing the project closer to the Front-End Engineering Design stage.

NNPC said a preferred contractor has been identified for the Floating Production Storage and Offloading facility, although the final award remains subject to regulatory, partner and governance approvals.

NNPC Group Chief Executive Officer, Bayo Ojulari, said the latest agreements showed that reforms in Nigeria’s oil and gas sector were beginning to translate into major investment projects.

He said the company would continue working with the Federal Government and other stakeholders to ensure the project delivers significant value to Nigeria.

Once completed, the Bonga South West/Aparo project is expected to become one of the country’s major new deepwater production developments and contribute to efforts to increase national oil and gas output.