President Bola Ahmed Tinubu and Claudio Descalzi, chief executive of Italian energy giant Eni, met in Abuja on Wednesday to finalize a settlement that clears the way for the long-delayed development of Nigeria’s controversial OPL 245 oil block.
The agreement resolves more than a decade of legal disputes surrounding one of Nigeria’s largest deepwater oil assets and paves the way for new exploration and production licenses that could significantly boost the country’s crude output.
According to a statement from Eni, the settlement allows the conversion of the existing prospecting licence into four new assets: two development licences — Petroleum Mining Leases (PML) 102 and 103 — and two exploration licences — Petroleum Prospecting Leases (PPL) 2011 and 2012. The licences will be operated by Nigerian Agip Exploration Limited, a subsidiary of Eni, alongside partners Nigerian National Petroleum Company Limited and Shell.
The restructuring effectively breaks up the original OPL 245 block and allows development of the Zabazaba and Etan offshore fields, projects expected to unlock about 500 million barrels of reserves. Plans for the development include a floating production, storage and offloading vessel capable of producing around 150,000 barrels of oil per day, with associated gas expected to feed the Nigeria LNG export facility.
“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,” Tinubu said in a statement released by the presidency.
The government said the agreement also includes the withdrawal of an international arbitration case linked to the block at the International Centre for Settlement of Investment Disputes.
Nigeria’s special adviser on energy, Olu Arowolo-Verheijen, described the settlement as an improvement on a previous 2011 arrangement.
“The revised terms strike a balanced outcome, providing investors with the clarity and predictability required to proceed with major deepwater investments, while ensuring stronger value accretion and safeguards for the Federation,” she said.
The OPL 245 field has been at the center of one of the oil industry’s most controversial corruption cases. The block was originally awarded in 1998 to Malabu Oil & Gas, a company linked to former Nigerian oil minister Dan Etete. It was later acquired by Eni and Shell in a $1.3 billion deal that prosecutors in Italy alleged involved payments to politicians and middlemen.
Executives from the companies, including Descalzi, faced trial in Milan but were acquitted in 2021 after denying wrongdoing.
The dispute, which triggered lawsuits and investigations across multiple jurisdictions, effectively stalled development of the block for nearly three decades.
By restructuring the asset and settling the outstanding legal claims, the Tinubu administration hopes to unlock fresh investment in Nigeria’s offshore sector and revive production growth.
Eni said the development strengthens its long-standing relationship with Nigeria, where the company has operated since 1962. It currently produces about 55,000 barrels of oil equivalent per day in the country and holds a 10.4% stake in Nigeria LNG.
Officials say bringing OPL 245 into production is part of broader efforts to restore investor confidence in Nigeria’s energy sector following years of regulatory uncertainty.
“The resolution of OPL 245 underscores the administration’s determination to unlock Nigeria’s strategic energy assets, attract responsible investment, and ensure that the country’s resources deliver growth, jobs, and long-term prosperity,” the presidency said.
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