Shell Restarts $12 Billion Nigeria Deepwater Oil Project After Years of Delay
In a major development for Nigeria’s petroleum sector, Shell Plc has relaunched preparatory work on the long-stalled Bonga South West-Aparo offshore oil project by issuing a new tender for a floating production, storage, and offloading (FPSO) unit. The move signals renewed momentum for one of the country’s largest undeveloped deepwater prospects after nearly a decade of inactivity.
The tender process, initiated by the British energy major as part of early-stage project work, relates to the Bonga South West-Aparo development located in deep waters offshore Nigeria. Industry reports indicate that the FPSO under consideration would have a production capacity of approximately 150,000 barrels per day. While Shell has not announced a final investment decision, the launch of the tender represents the most tangible progress on the project in years.
The Bonga South West-Aparo development, located in Oil Mining Lease (OML) 118 southwest of the producing Bonga Field, has an estimated development cost of around $12 billion. Despite its scale and proximity to one of Nigeria’s most prolific deepwater fields, the project has remained stalled since the mid-2010s. Delays were driven by a combination of factors, including the global oil price downturn that began in 2014, shifting capital allocation priorities within Shell’s global portfolio, and prolonged commercial and contractual uncertainties.
Shell’s renewed activity comes as Nigeria seeks to increase crude oil output and stabilize revenues from its petroleum sector. Official data show that the country has struggled to meet production targets in recent years. Figures from the Nigerian Upstream Petroleum Regulatory Commission indicate that crude oil production averaged between 1.38 million and 1.53 million barrels per day during the first eleven months of 2025, well below the government’s target of 2 million barrels per day.
The decision to revisit Bonga South West-Aparo reflects a broader shift by international operators toward Nigeria’s deep offshore resources, which are widely viewed as more secure and operationally stable than onshore and shallow-water assets. Deepwater projects are less exposed to pipeline vandalism, theft, and production shutdowns that have affected onshore infrastructure in the Niger Delta, making them more attractive for long-term investment.
The renewed interest also coincides with recent petroleum sector reforms introduced by Nigeria to improve the investment climate and encourage capital inflows. These changes have prompted operators to reassess previously delayed or shelved projects. Shell’s move aligns with growing momentum in Nigeria’s deep offshore sector. In May 2025, ExxonMobil announced plans to invest $1.5 billion in revitalizing its Nigerian deepwater assets, including the Usan Field, although a final investment decision has yet to be formally confirmed. TotalEnergies has also expanded its offshore footprint, signing production-sharing contracts in September 2025 for two deepwater blocks, PPL 2000 and PPL 2001. Together, these developments suggest a gradual reawakening of interest in Nigeria’s deep offshore oil potential, with Bonga South West-Aparo once again emerging as a key project to watch.
Source: angolanminingoilandgas.com
