The Nigerian government has reached a settlement with Italian energy company Eni and its subsidiary Nigerian Agip Exploration Limited (NAEL) over the long-disputed Oil Prospecting Licence (OPL) 245, a move officials say could unlock a major deepwater oil development project.
Bola Ahmed Tinubu announced the agreement during a meeting in Abuja with Eni executives, including the company’s chief executive, Claudio Descalzi. The settlement concludes a dispute that has lasted more than 15 years over rights to the offshore block, considered one of Nigeria’s most commercially significant deepwater assets.
According to a statement from the presidency, the agreement “brought to a close the long-standing dispute over Oil Prospecting Licence (OPL) 245, paving the way for the development of one of Nigeria’s most significant deepwater resources.”
The settlement clears the way for a final investment decision on the Zabazaba–Etan deepwater project, which officials say could add about 150,000 barrels per day to Nigeria’s oil production capacity if developed. Nigeria, Africa’s largest oil producer, has struggled in recent years to sustain output due to underinvestment, oil theft and operational disruptions.
Tinubu described the agreement as a signal to investors about Nigeria’s willingness to resolve long-standing disputes in its 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.
The dispute over OPL 245 has been one of the most controversial in Nigeria’s oil industry, involving years of legal battles and international scrutiny over how the block was originally awarded and subsequently transferred to major oil companies. The resolution is expected to remove a key uncertainty surrounding the asset and potentially revive investment interest in Nigeria’s deepwater sector.
Olu Verheijen, special adviser to the president on energy, said the new agreement improves on an earlier 2011 resolution arrangement.
“The settlement also represents a significant improvement on the 2011 Resolution Agreement, reflecting the policy framework established under the Petroleum Industry Act (PIA) and the administration’s broader fiscal and governance reforms in the energy sector,” Verheijen said.
She added that the revised terms “strike a balanced outcome, providing investors with the clarity and predictability required to proceed with major deepwater investments while ensuring stronger value accretion and safeguards for the Federation.”
The settlement comes as Nigeria seeks to attract new investment into its oil and gas sector following the implementation of the Petroleum Industry Act, which introduced new regulatory and fiscal frameworks aimed at improving transparency and competitiveness.
Government officials say resolving the OPL 245 dispute removes one of the most prominent legacy issues in Nigeria’s upstream sector and could help strengthen investor confidence as the country works to expand energy production and stabilise revenues from oil exports.
