The Presidency has announced the resolution of the long-running dispute surrounding OPL 245, describing the agreement as a major breakthrough that could significantly increase Nigeria’s oil production.
According to the Presidency, the settlement clears the path for the development of the Zabazaba–Etan deepwater project, which has the potential to add about 150,000 barrels of crude oil per day to Nigeria’s production capacity.
Although full details of the agreement were not made public, officials described it as a historic settlement that removes one of the biggest obstacles to developing one of Nigeria’s most valuable deepwater oil assets.
OPL 245, located offshore in the Niger Delta, is believed to hold about nine billion barrels of crude oil. Despite its huge potential, the block has remained largely undeveloped for nearly 30 years due to corruption allegations and complex legal disputes involving Nigeria, Italy, the United Kingdom and the United States.
The dispute involved the Federal Government, international oil companies Shell and Eni, and Malabu Oil and Gas, the company originally awarded the block.
Presidential spokesperson Bayo Onanuga said the agreement restores stability and clarity to one of Nigeria’s most commercially promising oil assets.
“With the dispute now settled, the pathway is clear for a Final Investment Decision on the Zabazaba–Etan development project,” he said, adding that the project would strengthen Nigeria’s long-term energy outlook.
The signing ceremony was attended by senior officials from Italian oil company Eni, including its Chief Executive Officer Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Region Mario Bello, and Managing Director of Nigerian Agip Exploration Fabrizio Bolondi. Also present was the President’s Special Adviser on Energy, Olu Arowolo-Verheijen.
President Bola Ahmed Tinubu described the resolution as a key milestone in Nigeria’s economic reform agenda. He said the move shows the government’s commitment to resolving long-standing disputes, rebuilding investor confidence, and ensuring that the country’s natural resources benefit Nigerians.
According to him, the agreement sends a strong signal to international investors that Nigeria is ready to address legacy issues transparently and provide a stable environment for long-term investments.
Arowolo-Verheijen noted that the new settlement improves on the 2011 resolution agreement and aligns with the framework established under the Petroleum Industry Act.
She explained that the revised terms provide greater clarity and predictability for investors while ensuring stronger returns and safeguards for the Nigerian government.
Reports also indicate that Nigeria has restructured the OPL 245 block into four separate assets expected to be operated by Eni and Shell, a move aimed at accelerating development.
The government said resolving the OPL 245 dispute is part of broader reforms introduced since 2023 to strengthen Nigeria’s competitiveness in the global energy market and attract more investment into the oil and gas sector.
Background of the OPL 245 Dispute
OPL 245 was originally awarded in 1998 by the regime of Sani Abacha to Malabu Oil and Gas, a company linked to the then Minister of Petroleum Resources Dan Etete.
The award became controversial because Etete was accused of allocating the oil block to a company he secretly controlled.
The block was later revoked and re-awarded several times, triggering legal battles between Malabu, international oil companies and the Nigerian government.
In 2011, during the administration of Goodluck Jonathan, a settlement agreement allowed Shell and Eni to acquire the block after paying about $1.092 billion, which was transferred to Malabu as compensation.
The deal later attracted global scrutiny after allegations that a large portion of the money was diverted to politicians and middlemen.
Several executives from Shell and Eni faced trial in Italy over corruption allegations, but they were eventually acquitted in 2021 after the court found no evidence of wrongdoing.
Former Attorney-General Mohammed Bello Adoke was also charged in Nigeria in connection with the deal but was later cleared after prosecutors said they lacked sufficient evidence.
With the dispute now resolved, the Nigerian government says development of the oil block can finally move forward, potentially unlocking billions of dollars in investment and significantly increasing the country’s oil production capacity.
