President Bola Tinubu has announced the resolution of a protracted dispute over Oil Prospecting Licence (OPL) 245, marking the end of a saga that has lingered for over 15 years and unlocking potential investments in one of Nigeria’s largest untapped deepwater oil blocks.
The settlement, signed in Abuja, involves the Federal Government of Nigeria, Italian energy giant Eni, and its subsidiary Nigerian Agip Exploration Limited (NAEL). The agreement was revealed during a meeting at the State House attended by Eni’s CEO Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Region Mario Bello, Managing Director of NAEL Fabrizio Bolondi, and Tinubu’s Special Adviser on Energy, Olu Arowolo-Verheijen.
“This resolution sends a clear signal to global investors that Nigeria is prepared to address legacy issues transparently, uphold the rule of law, and create a stable environment for long-term capital,” President Tinubu stated in the announcement.
The deal paves the way for a Final Investment Decision on the Zabazaba-Etan project, which could boost Nigeria’s oil production by about 150,000 barrels per day. Officials described it as a key milestone in the administration’s economic reforms, aligning with the Petroleum Industry Act (PIA) of 2021 and broader efforts to enhance fiscal governance in the energy sector.
Olu Arowolo-Verheijen emphasized that the terms improve upon a 2011 agreement, offering better value for Nigeria while providing investors with predictability. “The revised terms strike a balanced outcome… ensuring stronger value accretion and safeguards for the Federation,” she said.
The OPL 245 block, estimated to hold up to 9 billion barrels of oil, has been mired in controversy since its initial award in 1998 to Malabu Oil and Gas, a company linked to former Petroleum Minister Dan Etete. Subsequent transfers to Eni and Shell in 2011 sparked international corruption investigations, including allegations of over $1 billion in bribes. Courts in Italy and elsewhere have acquitted the companies in recent years, but legal battles stalled development.
President Tinubu praised the contributions of various stakeholders, including the Attorney General’s Office, Ministry of Petroleum Resources, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited. The resolution is seen as part of wider reforms since 2023 that have spurred investor interest in Nigeria’s oil and gas industry.
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