Energy
NNPC Secures Tinubu’s Approval for $20bn FID on Bonga Deepwater Project
The Nigerian National Petroleum Company Limited NNPC (NNPC Ltd) has announced that it had secured presidential approval for a targeted fiscal incentive package aimed at unlocking the long-delayed Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project.
This was detailed in a statement in Abuja by NNPC Ltd’s spokesman, Andy Odeh, who stressed that the development is expected to attract about $20 billion in Foreign Direct Investment (FDI) and revive large-scale offshore oil investments in the country.
ALSO READ: Dangote Refinery Cuts Petrol, Diesel Prices
The approval, granted by President Bola Tinubu, it said, is designed to resolve long-standing fiscal and commercial bottlenecks that stalled the project for nearly two decades and pave the way for a major expansion of Nigeria’s deepwater oil production.
The Bonga Southwest Aparo development, operated by Shell through its Nigerian deepwater subsidiary, is expected to deliver about 150,000 barrels of crude oil per day and 140 million standard cubic feet (Scf) of gas daily once fully operational.
According to the statement, the presidential approval followed months of technical and commercial engagements involving the national oil company, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the global leadership of Shell.
“His Excellency, President Bola Ahmed Tinubu, has approved a targeted fiscal incentive designed to unlock the long awaited Final Investment Decision (FID) on the Bonga Southwest Aparo (BSWA) deepwater project, marking a milestone in Nigeria’s ongoing drive to attract strategic investments and accelerate sustainable economic growth. The project is estimated to attract about $20 billion in Foreign Direct Investment and position Nigeria for a new era of deepwater production.
“The approval followed months of intensive technical and commercial negotiations involving NNPC Limited as the concessionaire, the Nigeria Revenue Service (NRS), the Special Adviser to the President on Energy, Olu Verheijen, and the Shell CEO Mr. Wael Sawan,” it stated.
According to the statement, it represents the culmination of the President’s directive, issued during a courtesy visit by Shell CEO, Sawan, to fast-track the enablers required to move this strategic national asset to FID. Besides, the national oil company said it signals renewed confidence in Nigeria’s policy direction and its resolve to translate reform momentum into tangible investment outcomes.
The NNPC said the approval represented a significant milestone in Nigeria’s effort to reposition itself as a competitive destination for global energy investment, particularly in the capital-intensive deepwater segment.
Group Chief Executive Officer of NNPC, Bayo Ojulari, described the development as a major breakthrough for the country’s oil and gas sector.
He noted that the project had remained stalled for almost two decades due to fiscal and commercial uncertainties but said the latest approval reflected the government’s commitment to unlocking strategic investments.
Ojulari added that the milestone underscored the company’s commitment to leveraging partnerships with international oil companies to unlock Nigeria’s vast hydrocarbon potential.
“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.
“This milestone further affirms NNPC’s commitment, under the President’s leadership, to unlocking Nigeria’s vast energy potential through partnerships, disciplined innovation and execution excellence,” the NNPC GCEO stressed.
The Bonga Southwest Aparo project will become the first deepwater final investment decision on a Production Sharing Contract (PSC) asset in Nigeria since 2008, signalling renewed confidence among international investors in the country’s policy environment.
Central to the breakthrough is the fiscal package approved by the President, which includes an enhanced Production Tax Credit as well as the resolution of issues arising from the 2021 dispute settlement agreement between the government and contractors.
The NNPC said the revised fiscal framework was designed to strike a balance between protecting Nigeria’s long-term revenue interests and ensuring the project remains commercially viable for investors.
As concessionaire, the national oil company said it worked closely with Shell Nigeria Exploration and Production Company (SNEPCo) and other contractor parties to design alternative fiscal structures capable of addressing structural challenges that had hindered progress on the project.
The proposal subsequently underwent evaluation by the NRS before recommendations were forwarded to the presidency for final approval. NNPC noted that the breakthrough aligns with its broader strategy of pursuing partnership-driven growth, particularly in high-capital offshore developments that require collaboration between the national oil company and global energy majors.
The company added that aligning policy reforms with investor expectations is essential to unlocking large-scale investments capable of generating jobs, boosting government revenues and strengthening Nigeria’s long-term energy security.
Once the final investment decision is taken by the project partners, the multi-billion-dollar development is expected to transform Nigeria’s deepwater production profile while creating significant economic benefits.
The NNPC estimates that the project will generate over 5,000 direct and indirect jobs during construction and operations. It could also signal the beginning of a new cycle of offshore investments in Nigeria, especially as global oil companies increasingly seek stable fiscal environments before committing capital to large deepwater projects.
With presidential approval now secured, NNPC and its partners are expected to move toward the formal FID, which would trigger the full-scale capital deployment required to develop the offshore field.
Crude oil and condensate supply to local refineries rose by 88.4 percent to 53.7 million barrels in the second quarter of 2026, Q2’26, from 28.5 million barrels in the first quarter, Q1’26, the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, has said.
The commission, in its Q2 2026 statistics on the enforcement of the Domestic Crude Supply Obligation, DCSO, said the 53.7 million barrels supplied to domestic refiners represented 97.4 percent performance during the quarter.
The DCSO is being enforced by the NUPRC pursuant to Section 109 of the Petroleum Industry Act, PIA, which provides for the supply of crude oil produced in Nigeria to domestic refineries.
According to the commission, the increase in crude supply coincided with higher domestic oil production and the execution of long-term crude supply agreements supported by bankable Sales and Purchase Agreements, SPAs, between producers and domestic refiners.
READ ALSO: Oil Prices Jump Further as Hopes for Hormuz Deal Fade
The NUPRC said it conducts monthly consultations with crude oil producers and licensed domestic refineries, following which specific volumes of crude oil and condensate are allocated to producers for supply to local refiners.
It, however, noted that the DCSO operates on a “willing buyer, willing seller” basis in accordance with the PIA, which affects the volumes eventually supplied and accepted.
In April, the NUPRC allocated 18.13 million barrels to producers, while producers offered 19.31 million barrels to domestic refiners. Actual supply stood at 20.88 million barrels, representing 114.9 percent performance against the allocation.
In May, the commission allocated 18.78 million barrels, while producers offered 23.19 million barrels to local refiners. Actual supply fell to 14.23 million barrels, representing 75.8 percent compliance.
Supply increased in June, with the NUPRC allocating 18.17 million barrels to producers, while producers offered 26.84 million barrels to refiners. Actual supply stood at 18.61 million barrels, representing 102.4 percent performance.
The commission said the figures showed that the DCSO was being actively administered and enforced, adding that the improvement was supported by increased crude production and stronger commercial arrangements between producers and refiners.
At the refinery level, the NUPRC said Dangote Refinery required 63 million barrels of crude in Q2, while producers offered 68.1 million barrels.
The 68.1 million barrels offered represented 98 percent of the total crude volumes offered by producers during the quarter.
However, the refinery accepted 52.6 million barrels, representing 78 percent of the volume offered to it.
The NUPRC said it remained committed to supporting the Federal Government’s objective of achieving energy sufficiency by leveraging the PIA to sustain the growth in crude oil production and continuously enforce the DCSO.
Oil prices extended a strong rally Tuesday as hopes for a reopening of the Strait of Hormuz fade, fanning fresh inflation fears and ramping up bets on at least one US interest rate hike this year.
Crude has surged around 10 per cent over the past week, with the United States and Iran appearing no closer to a deal on the crucial waterway despite upbeat comments from the White House earlier in the month.
In the latest blow, Donald Trump said Monday he would seek conflict compensation from Iran as part of any peace negotiations, citing attacks and killings stretching back decades allegedly backed or perpetrated by Tehran.
The US president’s announcement was a direct response to Tehran’s demand for US war reparations as a precondition to any resolution of the crisis.
READ ALSO: DPRP Tops US for Second Consecutive Month as Europe’s Largest Jet Fuel Supplier
Trump’s remarks came a day after he said he was “low-keying” his approach to the conflict, suggesting he was prepared to let economic pressure mount in place of further military strikes.
However, the latest back and forth risks putting a quick agreement further out of reach, and on Monday both main crude contracts jumped around five per cent. They rose more than one per cent on Tuesday.
“In the absence of any positive headlines on negotiations to reopen the strait, pressure on oil prices has been upward,” wrote Jason Wong at BNZ.
And Stephen Innes, global strategist at Quintex Intel, said: “In effect, both sides are trying to weaponise the oil barrel without firing another shot. Washington is trying to choke Iran’s ability to get its crude out, while Tehran is squeezing the artery through which everybody else’s crude gets through.
“It is quite the game of chicken.”
The prospect of oil prices remaining elevated for the time being has revived concerns over inflation and boosted the chances of interest rate increases.
While a surprise loss of more than 20,000 jobs in the US economy last month eased fears of a Federal Reserve hike, a spike in price pressures could force the bank’s hand.
Cleveland Fed boss Beth Hammack told Yahoo Finance on Monday: “I would say in general, one 25-basis-point move probably doesn’t do a whole lot for the economy.
“So it’s probably some number of (movements). But I don’t want to prejudge what that number is going to be.”
The US-Iran deadlock and rising crude costs come as traders await the release of consumer price data on Wednesday, which could play a key role in guiding the Fed on its next move.
Asian equities were mixed following a tepid day on Wall Street.
Hong Kong, Shanghai, Wellington, Mumbai, Bangkok and Jakarta all retreated but there were gains in Seoul, Sydney, Singapore, Taipei and Manila. London and Frankfurt opened higher while Paris was flat.
Tokyo was closed for a holiday.
Key figures around 0715 GMT include: West Texas Intermediate: UP 1.5 per cent at $83.37 per barrel, Brent North Sea Crude: UP 1.3 per cent at $88.85 per barrel, Hong Kong – Hang Seng Index: DOWN 1.0 per cent at 25,679.98, Shanghai – Composite: DOWN 0.8 per cent at 3,934.09 (close).
London – FTSE 100: UP 0.1 per cent at 10,872.52, Tokyo – Nikkei 225: Closed for holiday, Euro/dollar: DOWN at $1.1535 from $1.1543 on Monday, Pound/dollar: DOWN at $1.3505 from $1.3508, Dollar/yen: DOWN at 159.22 yen from 159.31 yen, Euro/pound: DOWN at 85.42 pence from 85.45 pence, New York – DOW: DOWN 0.1 percent at 53,975.98 (close).
Courtesy – AFP
One distinguishing factor of the recruits of the NNPC Tigers Class of 2026, is the emergence of identical twin brothers, Hussaini and Hassan Malami, among them, as both secured positions at the Nigerian National Petroleum Company Limited (NNPC Ltd).
The brothers’ recruitment has also challenged a common misconception that the NNPC Ltd does not employ more than one person from the same family.
Hussaini had always desired a career at the NNPC Ltd and applied immediately when the recruitment opened. He then encouraged Hassan, his twin brother to submit an application.
Hassan, however, was initially reluctant because he believed the NNPC Ltd only hired one person per family and did not want to interfere with his brother’s ambition.
READ ALSO: Nigeria’s Energy Security Depends on Pipeline Protection
His own career aspiration was to join the Nigerian Air Force (NAF). He already worked in the banking sector and had not considered a corporate career.
His doubts were also influenced by the experience of three older siblings — a lawyer, an engineer and a business administrator — who had previously applied to the NNPC Ltd without success.
Hassan eventually applied close to the deadline following repeated encouragement from his twin.
The brothers sat for the computer-based test on the same day but in different locations, with Hussaini taking his test in Sokoto and Hassan in Kaduna.
After going through the recruitment process, including interviews, both brothers received employment letters on the same day.
“I opened the email after midnight and wanted to wake everybody up to tell them,” Hussaini laughed.
Hassan discovered the news after seeing it on the family WhatsApp group when he woke up.
He said Hussaini’s success made him nervous about his own chances.
“I was now nervous about the possibility of not being successful once Hussaini shared his news.”
Both brothers eventually secured positions at the state oil major.
Hussaini now works with the NNPC Exploration & Production Limited (NNPC E&P Limited), while Hassan is with the NNPC Gas Infrastructure Company (NGIC).
For Hassan, his new position has provided an opportunity to gain a deeper understanding of Nigeria’s gas industry.
“I didn’t know there was a whole business dedicated to transporting gas,” Hassan said. “Now I’ve seen how gas powers plants and manufacturing companies…. Hearing that gas is the future is one thing. Seeing how it is happening is another.”
Although Hassan had initially been uninterested in a corporate career, he now considers his work at the NNPC Ltd another way of serving Nigeria.
He still hopes to explore military service before reaching the age limit in 2030.
Hussaini, meanwhile, said his experience has strengthened his long-standing ambition to contribute to society. He also hopes to return to his university as a guest lecturer and share his professional experience with students.
“When I was in university, I only had one lecturer with field experience,” he said. “I want to share practical experience with students someday.”
Asked which of the NNPC Ltd’s culture transformation pillar best reflects his mindset, Hussaini selected Enterprise First.
He explained his choice by saying that “giving your best to the company is giving your best to the country.”
Hassan identified with Execution Excellence, drawing from his background as a civil engineer.
“I’m a civil engineer…. I like seeing things come to life from concept to completion.”
The twins also urged young Nigerians interested in joining the NNPC Ltd not to be discouraged by rumours about the recruitment process.
“Ignore the rumours. You don’t need to know anybody at NNPC. Apply. Take the test and earn your place.”
Their story demonstrates that being from the same family does not prevent multiple candidates from securing opportunities at the NNPC Ltd, provided they meet the requirements and successfully navigate the recruitment process.
Crude Supply to Local Refineries Rises 88.4% in Q2 — NUPRC
PENGASSAN Points to Losses for Govt Refineries’ Closure
Oil Prices Jump Further as Hopes for Hormuz Deal Fade
2015: Jonathan Showed Power Isn’t Worth Nigerian Blood — Nenadi Usman
Why Osun Needs Me for Another Term — Adeleke
‘Dancing Doesn’t Stop Me From Working’ — Adeleke Hits Back at Critics
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
