Nigeria has resolved the long-standing OPL 245 oil dispute, a saga that lasted more than 15 years, President Bola Tinubu announced yesterday. The resolution opens the way for fresh investments in one of the country’s largest deepwater oil blocks.
The agreement, signed in Abuja, involves the Federal Government, Italian energy company Eni, and its subsidiary, Nigerian Agip Exploration Limited (NAEL). The signing was witnessed by Eni’s CEO Claudio Descalzi, COO Guido Brusco, Head of Sub-Saharan Region Mario Bello, NAEL Managing Director Fabrizio Bolondi, and Tinubu’s Special Adviser on Energy, Olu Arowolo-Verheijen.
President Tinubu said the settlement “sends a clear message to global investors that Nigeria is committed to resolving legacy issues transparently, upholding the rule of law, and creating a stable environment for long-term investments.”
The resolution allows a Final Investment Decision on the Zabazaba-Etan project, expected to add about 150,000 barrels of oil per day to Nigeria’s output. Officials described it as a key achievement in the administration’s economic reforms and a demonstration of the Petroleum Industry Act (PIA) of 2021 in action.
Olu Arowolo-Verheijen said the new terms improve on the 2011 agreement, offering better value for Nigeria while providing investors with more certainty. “The revised arrangement strikes a balanced outcome, ensuring stronger value and protections for the Federation,” she said.
OPL 245, estimated to hold up to 9 billion barrels of oil, has been controversial since its award in 1998 to Malabu Oil and Gas, linked to former Petroleum Minister Dan Etete. Its transfer to Eni and Shell in 2011 sparked international probes over alleged bribes exceeding $1 billion. While courts in Italy and elsewhere cleared the companies, legal disputes had stalled development.
President Tinubu commended the Attorney General’s Office, Ministry of Petroleum Resources, NUPRC, and NNPC Limited for their roles in the settlement, which analysts say could boost investor confidence in Nigeria’s oil and gas sector.
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