ABUJA – President Bola Tinubu has announced the resolution of a protracted multi-billion-dollar dispute surrounding Oil Prospecting Licence (OPL) 245, signing a historic settlement agreement with energy giant Eni and its subsidiary, Nigerian Agip Exploration Limited (NAEL).
The agreement, finalised in Abuja on Thursday, brings legal and fiscal closure to a controversy that has hung over Nigeria’s offshore oil sector for more than 15 years. The presidency confirmed that the deal immediately removes the barriers to a Final Investment Decision (FID) on the Zabazaba–Etan deepwater project.
According to a statement from the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the project is expected to add approximately 150,000 barrels per day to Nigeria’s current production capacity once operational.
The announcement followed a meeting in the President’s office attended by top Eni executives, including CEO Claudio Descalzi and Chief Operating Officer Guido Brusco, as well as Nigerian officials.
President Tinubu described the resolution as a strategic victory for his administration’s economic reform agenda, framing it as a move to clear legacy risks that have historically deterred foreign capital.
“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,” President Tinubu was quoted as saying.
OPL 245, one of the largest deepwater blocks in the country, has been at the centre of legal battles and corruption allegations for over a decade, involving previous administrations and multinational oil companies. The dispute effectively sterilised the asset, preventing development despite its commercial potential.
The presidency emphasised that the new terms negotiated with Eni represent a significant improvement on a previous resolution agreement struck in 2011.
Olu Arowolo-Verheijen, the President’s Special Adviser on Energy, stated that the revised framework aligns with the fiscal and governance provisions of the Petroleum Industry Act (PIA). She noted that the agreement provides investors with “clarity and predictability” while ensuring “stronger value accretion and safeguards for the Federation.”
The settlement is the latest in a series of executive actions aimed at reversing the decline in investment in Nigeria’s oil and gas sector. Since 2023, the administration has introduced fiscal incentives and policy reforms targeting deepwater production.
“By resolving the OPL 245 dispute, the Federal Government has removed one of the most prominent legacy risks in Nigeria’s upstream sector,” Arowolo-Verjeihen added.
President Tinubu commended the Office of the Attorney General of the Federation, the Ministry of Petroleum Resources, and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) for their roles in finalising the deal.
The successful resolution of the dispute clears the path for the development of the Zabazaba–Etan project, which is seen as critical to bolstering Nigeria’s deepwater production capacity and securing long-term energy revenues.
