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Shell’s Bonga South West/Aparo (BSWA) deepwater project, located in OML 118 in the Niger Delta, is set for development. The BSWA deepwater project, which according to the Minister of State for Petroleum, Dr. Ibe Kachikwu, will cost $10 billion with numerous value addition in-country, including job creation, skills acquisition and capacity development for Nigerians.

Kachikwu had last year directed the Nigerian National Petroleum Corporation (NNPC) and Shell Nigeria Exploration and Production Company (SNEPCo) to commence the tendering process for the execution of the project.

Industry watchers have disclosed that the stakeholders have to take the Final Investment Decision (FID) on the project and will soon announce invitation to tender for the BSWA project.  Noting that there is now a clear commercial framework, aligned with stakeholders and the confidence to move forward the Bonga South West Aparo FID.

This is a key milestone for the project and the development of Nigeria’s deep water oil and gas industry and is coming on the heels of the Egina field, operated by Total, which began production last month with an output of 200,000 barrels per day.

On when the FID will be taken, the stakeholders identified competitive bidding as the first stage, followed by evaluation and sanctioning activities.

On April 17, last year, President Muhammadu Buhari attended a meeting with a delegation from Royal Dutch Shell Plc, led by its Chief Executive Officer Ben Van Beurden, in London, where a decision was reached that the oil giant and the NNPC would begin the implementation of projects that have been on the drawing board for several years.

The project is expected to add 225,000 barrels per day of crude oil to Nigeria’s production.

The BSWA also extends into OMLs 132 and 140, operated by Chevron, where it is called Aparo. The project includes the construction of a new floating production, storage and offloading (FPSO) facility.

SNEPCo is the operator of the BSWA project with NNPC, Esso Exploration & Production Nigeria (Deepwater) Limited, Total E&P Nigeria Limited, Nigerian Agip Exploration Limited, Texaco Nigeria Outer Shelf Limited, Star Ultra Deep Petroleum Limited, Sasol Exploration and Production Nigeria Limited as shareholders.


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