President Bola Ahmed Tinubu has announced the resolution of the long-standing dispute over Oil Prospecting Licence 245 (OPL 245), a development expected to unlock one of Nigeria’s most significant deepwater oil investments.
The settlement agreement, reached between the Federal Government of Nigeria, Eni and Nigerian Agip Exploration Limited (NAEL), formally ends a dispute that has lasted for more than 15 years and clears the path for the development of the highly anticipated Zabazaba–Etan deepwater oil project.
The agreement was announced at a meeting held at the Presidential Villa in Abuja, attended by senior officials of Eni including the company’s 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.
According to the presidency, the settlement restores clarity and regulatory stability to OPL 245, widely regarded as one of Nigeria’s most commercially promising deepwater oil blocks.
With the dispute now resolved, industry stakeholders expect the partners to move toward a Final Investment Decision (FID) on the Zabazaba–Etan development project. The project is projected to add about 150,000 barrels of crude oil per day to Nigeria’s production capacity when operational.
President Tinubu described the settlement as a strategic breakthrough that reinforces the administration’s broader economic reform agenda and commitment to restoring investor confidence in Nigeria’s energy sector.
“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,” the President said.
Energy adviser Olu Arowolo-Verheijen explained that the new agreement improves upon the earlier 2011 resolution arrangement and reflects the policy framework established under the Petroleum Industry Act.
According to him, the revised terms strike a balance by providing investors with the certainty required for large-scale deepwater investments while ensuring stronger value and safeguards for Nigeria.
He noted that resolving the OPL 245 dispute removes one of the most prominent legacy risks in Nigeria’s upstream oil sector and strengthens the government’s commitment to predictable regulation and transparent governance.
The settlement forms part of a broader series of reforms implemented since 2023 to improve Nigeria’s competitiveness in the global energy market and attract new capital to the oil and gas industry.
President Tinubu also commended institutions and agencies involved in achieving the settlement, including the Office of the Attorney General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission and NNPC Limited.
According to the presidency, the resolution is expected to unlock strategic investments, strengthen energy production, and ensure that Nigeria’s natural resources contribute to economic growth, employment generation, and long-term national prosperity.
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