NNPC moves Bonga project towards $21bn milestone

Nigeria’s drive to strengthen its position as a major oil and gas producer is receiving fresh impetus from progress on the Bonga South-West/Aparo deepwater project and an increase in the country’s upstream rig count.

The developments followed intense efforts by the leadership of NNPC Limited under its Group Chief Executive Officer, Bayo Ojulari, who has emphasised attracting investment, improving operational efficiency and accelerating projects capable of delivering commercial value.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show that Nigeria recorded 73 rigs in March 2026, compared with 72 in January and February. The March figure represented a 22.6 per cent increase over the corresponding period of 2025.

Land operations accounted for the largest share, with 52 rigs. Offshore operations increased to 12 rigs from 11, while swamp-based operations remained at nine.

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The data, however, distinguish between the total number of rigs in the sector and those actually active. Only 31 of the 73 rigs were active in March, while the others were either on standby, stacked or undergoing mobilisation.

Even so, the increase in the national rig count comes against a backdrop of renewed investment and development activity in the upstream sector.

One of the most significant developments is the progress on Bonga South-West/Aparo, an OML 118 deepwater project that could attract between $15 billion and $21 billion in investment over its lifespan.

NNPC Ltd and its partners have executed key agreements aimed at advancing the development towards a Final Investment Decision. The partners include Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited.

The proposed project could produce about 175,000 barrels of oil per day at peak production and approximately 140 million standard cubic feet of gas daily.

The project has completed its Pre-Front-End Engineering Design phase, while a preferred contractor has been selected for its Floating Production Storage and Offloading facility.

Although regulatory and commercial approvals are still required, the progress represents a significant step forward for a project with the potential to deliver substantial long-term production and investment.

Ojulari said the milestone demonstrated that reforms in Nigeria’s petroleum sector were translating into investment opportunities and major project development.

His comments followed an earlier disclosure that recent reforms had generated more than $34 billion in new investment commitments.

Ojulari also said the new Deep Offshore Oil and Gas Projects Incentives Order could unlock more than $50 billion in additional investments across Bonga South-West, Zabazaba and Owowo.

The potential impact could be considerable. New investments could boost crude oil production, strengthen government revenues and increase foreign-exchange earnings. Major projects could also generate employment and create opportunities for Nigerian companies and professionals.

The developments are particularly significant to Nigeria’s target of raising crude oil production to three million barrels per day by 2030.

Achieving the target would require sustained increases in drilling, field development and investment in existing and new assets. The latest rig figures and progress on Bonga South-West/Aparo suggest that some of the required building blocks are beginning to emerge.

For Nigeria’s petroleum industry, the challenge is to sustain the momentum, convert investment commitments into actual projects and ensure that regulatory and commercial processes support timely development.

The combination of increased rig deployment and progress on a major deepwater project therefore presents a cautiously optimistic picture of an upstream sector seeking to regain its investment momentum.