Nigeria has taken a significant step toward revitalising its oil and gas sector following the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245. Under the leadership of President Bola Ahmed Tinubu, the Federal Government reached a landmark settlement with the Italian energy giant Eni and Nigerian Agip Exploration Limited (NAEL), ending more than 15 years of legal and commercial uncertainty surrounding one of our nation’s most valuable offshore oil assets.
The agreement is widely viewed as a strategic breakthrough that could unlock large-scale deepwater investment, restore investor confidence, and potentially increase Nigeria’s oil production by about 150,000 barrels per day once the field is developed.
Background: The Long-Running OPL 245 Saga
OPL 245, located in Nigeria’s deep offshore Niger Delta, is believed to contain around 9 billion barrels of crude oil reserves, making it one of the country’s most commercially promising oil blocks.
The dispute dates back to 1998, when the license was originally awarded to Malabu Oil and Gas by the then petroleum minister, Dan Etete, during the military regime of General Sani Abacha. It later emerged that Etete secretly had an interest in the company, triggering allegations of corruption and conflict of interest.
Over the years, the block became the center of one of the oil industry’s most controversial international legal battles.
Key developments included:
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The revocation of the license by the government of Olusegun Obasanjo in 2001.
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A 2011 deal in which Royal Dutch Shell and Eni paid over $1 billion to acquire rights to the block.
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Multiple corruption investigations and court cases in Europe and Nigeria.
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International arbitration and civil claims that stalled development of the oil field for decades.
Despite its enormous potential, the block remained undeveloped due to the prolonged legal uncertainty.
The agreement, reached between the Federal Government of Nigeria, Eni, and Nigerian Agip Exploration Limited (NAEL), brings to an end more than 15 years of legal battles and uncertainty surrounding one of Nigeria’s most valuable offshore oil blocks.
President Tinubu announced the settlement on Thursday during a meeting at the Presidential Villa in Abuja, attended by Eni’s Chief Executive Officer, Claudio Descalzi, alongside other senior officials of the multinational energy company.
Among those present were Eni’s Chief Operating Officer, Guido Brusco; Head of Sub-Saharan Region, Mario Bello; and Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi.
The development was disclosed in a statement issued in Abuja by presidential spokesperson Bayo Onanuga.
Clearing the Path for the Zabazaba–Etan Project
With the dispute now resolved, the agreement clears the way for a Final Investment Decision on the Zabazaba–Etan deepwater project, one of the largest undeveloped offshore projects in Nigeria.
The project is expected to add approximately 150,000 barrels of crude oil per day to Nigeria’s production capacity once fully operational.
Industry analysts say this could represent one of the most significant boosts to Nigeria’s oil output in recent years, particularly as the country seeks to reverse declining production levels and attract new capital into its upstream sector.
Deepwater projects such as Zabazaba–Etan typically require massive capital investments in offshore drilling infrastructure, subsea systems, and floating production facilities, potentially drawing billions of dollars in foreign investment.
Tinubu: A Strategic Milestone for Economic Reform
President Tinubu described the settlement as a major milestone within his administration’s broader economic reform agenda aimed at improving the investment climate and restoring confidence in Nigeria’s energy sector.
“This resolution sends a clear signal to global investors that Nigeria is prepared to address legacy issues transparently and uphold the rule of law,” the president said.
According to Tinubu, resolving the OPL 245 dispute will help restore investor confidence and create a stable environment for long-term investment in the country’s oil and gas industry.
He also commended institutions that played key roles in achieving the settlement, including the Nigerian Upstream Petroleum Regulatory Commission and NNPC Limited.
Aligning with Petroleum Industry Act Reforms
Earlier, President Tinubu’s Special Adviser on Energy, Olu Verheijen, explained that the revised agreement reflects reforms introduced under the Petroleum Industry Act, which was enacted to modernise Nigeria’s oil and gas regulatory framework.
According to Verheijen, the new terms of the agreement provide greater clarity and predictability for investors while ensuring improved value for the Nigerian federation.
“The revised terms provide investors with clarity and predictability while ensuring stronger value for the federation,” she said.
Energy experts say aligning legacy agreements with the Petroleum Industry Act is critical to stabilising Nigeria’s regulatory environment and attracting fresh capital to the sector.
Implications for Nigeria’s Energy Sector
The resolution of the OPL 245 dispute could have far-reaching implications for Nigeria’s energy future.
For more than a decade, the unresolved legal issues surrounding the block were widely seen as a symbol of regulatory risk in the country’s oil industry.
By bringing the dispute to a close through negotiation and institutional collaboration, the federal government hopes to send a strong signal to global energy investors that Nigeria is committed to transparency, regulatory stability, and responsible resource development.
Beyond boosting oil production, the development of the Zabazaba–Etan field could also generate significant revenue through taxes and royalties while creating employment opportunities across engineering, logistics, and offshore services.
Unlocking Nigeria’s Energy Potential
President Tinubu emphasized that the settlement underscores his administration’s determination to unlock Nigeria’s vast energy resources and attract responsible investment into the sector.
With the legal cloud surrounding OPL 245 finally lifted, Nigeria may now be positioned to move forward with one of its most important deepwater developments.
If successfully implemented, the project could play a key role in strengthening Nigeria’s position as one of Africa’s leading oil producers while supporting broader economic growth and energy security.