President Bola Ahmed Tinubu has brokered a settlement in the long-running dispute over Oil Prospecting Licence (OPL) 245, paving the way for major deepwater investment that could significantly raise Nigeria’s crude oil production.
The agreement, reached between the Federal Government, Eni and Nigerian Agip Exploration Limited (NAEL), was concluded during a meeting presided over by the President at the Presidential Villa in Abuja.
At the meeting were the Chief Executive Officer of Eni, Claudio Descalzi; the company’s Chief Operating Officer, Guido Brusco; Head of Sub-Saharan Region, Mario Bello; Managing Director of NAEL, Fabrizio Bolondi; and the President’s Special Adviser on Energy, Olu Arowolo-Verheijen.
In a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the agreement brings to an end a 15-year dispute over the ownership and development rights to the oil block.
The resolution restores clarity to the prized offshore asset, widely regarded as one of Nigeria’s most commercially promising deepwater blocks.
With the dispute resolved, the parties are expected to move towards a Final Investment Decision on the Zabazaba-Etan development project, a major offshore field projected to add about 150,000 barrels per day (bpd) to Nigeria’s production capacity when operational.
Nigeria currently produces between 1.68 million and 1.71 million bpd. The additional output from the project is expected to support the Federal Government’s target of raising production to at least two million bpd.
Tinubu described the agreement as a milestone in his administration’s economic reform agenda, noting that it underscores government’s commitment to resolving legacy disputes and strengthening investor confidence in the country’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.
According to him, the settlement also reinforces the government’s determination to ensure that Nigeria’s natural resources generate sustainable value for the country and its citizens.
Providing further insight, Arowolo-Verheijen said the new arrangement significantly improves on the 2011 resolution framework, aligning it with reforms introduced under the Petroleum Industry Act, which has reshaped governance and fiscal structures in the oil and gas sector.
She explained that the revised agreement balances investor clarity required for large-scale deepwater investments with stronger value accrual and safeguards for the Nigerian Federation.
The resolution, she added, removes one of the most prominent legacy risks that has long weighed on Nigeria’s upstream oil sector.
“By resolving the OPL 245 dispute, the Federal Government has eliminated one of the most prominent legacy risks in Nigeria’s upstream sector and reinforced its commitment to predictable regulation, transparent governance and commercially viable investment frameworks,” she said.
The settlement also forms part of broader reforms initiated by the Tinubu administration since 2023 to reposition Nigeria as a competitive destination for global energy investment.
Industry analysts have long identified the OPL 245 dispute as a major obstacle to unlocking the full potential of the oil block, believed to contain vast deepwater reserves.
The Zabazaba-Etan project is expected to increase crude output, create jobs, stimulate local industry participation and boost government revenues when it comes on stream.
Tinubu commended institutions that played roles in resolving the dispute, including the Office of the Attorney General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited.
He emphasised that responsible investment and transparent governance would remain central pillars of the administration’s strategy for managing Nigeria’s natural resources.
According to him, the agreement represents not only the resolution of a complex legal dispute but also a decisive step towards strengthening Nigeria’s long-term energy outlook and economic growth prospects.
