President Bola Tinubu on Thursday announced the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245, clearing the path for the development of one of Nigeria’s most commercially significant deepwater oil assets.
The breakthrough followed the signing of a settlement agreement between the Federal Government of Nigeria, ENI, and Nigerian Agip Exploration Limited (NAEL) at the Presidential Villa, Abuja.
The meeting was attended by 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 Nigerian Agip Exploration, Fabrizio Bolondi; and the President’s Special Adviser on Energy, Olu Verheijen.
The agreement brings to an end more than 15 years of legal and commercial disputes surrounding the oil block, widely regarded as one of Nigeria’s most promising deepwater assets.
With the settlement concluded, attention is expected to shift to the Final Investment Decision (FID) for the Zabazaba, Etan deepwater development project, which could add about 150,000 barrels per day to Nigeria’s crude oil production capacity.
President Tinubu described the agreement as a major milestone in his administration’s efforts to resolve legacy disputes, restore investor confidence and unlock the country’s energy potential.
“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.
The President’s Special Adviser on Energy, Olu Verheijen, said the settlement represented a significant improvement over the 2011 Resolution Agreement and aligns with the regulatory framework established under the Petroleum Industry Act (PIA).
According to her, the revised terms strike a balance between providing investors with the clarity and predictability required for large-scale deepwater investments while ensuring stronger value for the Nigerian federation.
“The revised terms provide investors with the certainty required to proceed with major deepwater investments, while ensuring stronger value accretion and safeguards for the federation,” she said.
The resolution forms part of broader reforms introduced since 2023 to improve Nigeria’s competitiveness in global energy markets. These reforms, anchored in the Petroleum Industry Act and supported by executive policy measures, have begun attracting renewed investor interest and capital inflows into the country’s oil and gas sector.
Verheijen noted that resolving the OPL 245 dispute removes one of the most prominent legacy risks in Nigeria’s upstream industry and reinforces the government’s commitment to predictable regulation, transparent governance and commercially viable investment frameworks.
President Tinubu commended all institutions and stakeholders 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 (NUPRC), NNPC Limited and the leadership of ENI.
The administration said the resolution underscores its determination to unlock Nigeria’s strategic energy assets, attract responsible investment and ensure that the nation’s resources translate into economic growth, job creation and long-term prosperity for Nigerians. (Guardian)
English