Manny Ita –
Bola Ahmed Tinubu has announced a “historic settlement” to resolve the long-running dispute over Oil Prospecting Licence (OPL) 245, one of Nigeria’s most valuable deepwater oil blocks, potentially unlocking an additional 150,000 barrels of crude oil per day.
The presidency said the agreement clears the way for the development of the Zabazaba–Etan project, a major offshore field expected to strengthen Nigeria’s oil production and attract new investment into the sector.
OPL 245, located in the Niger Delta, is estimated to contain about nine billion barrels of crude oil but has remained largely undeveloped for nearly three decades due to legal disputes involving the Nigerian government, Royal Dutch Shell, Eni, and Malabu Oil and Gas.
Presidential spokesman Bayo Onanuga said the settlement restores “clarity and stability” to one of Nigeria’s most commercially promising oil assets.
According to the presidency, the deal aligns with reforms introduced under the Petroleum Industry Act and is intended to improve 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 and create a stable environment for long-term capital,” President Tinubu said.
Long-running global legal battle
The OPL 245 controversy dates back to 1998, when the block was originally awarded during the military regime of Sani Abacha to Malabu Oil and Gas, a company linked to former petroleum minister Dan Etete.
The award triggered years of disputes and legal battles across multiple jurisdictions—including Nigeria, Italy, the United Kingdom, and the United States—over the block’s ownership and the handling of a $1.1 billion settlement deal reached in 2011 during the administration of Goodluck Jonathan.
The deal led to criminal investigations and trials in Italy involving executives of Shell and Eni, including Eni CEO Claudio Descalzi. All defendants were acquitted in 2021, denying allegations of corruption.
Former Attorney-General Mohammed Bello Adoke also faced corruption and money-laundering charges in Nigeria related to the agreement but was later discharged and acquitted by Nigerian courts.
Economic significance
Presidential energy adviser Olu Arowolo-Verheijen said the new settlement improves on the 2011 arrangement and reflects current fiscal and governance reforms in the oil sector.
Analysts say bringing OPL 245 into production could significantly boost Nigeria’s oil output and strengthen the country’s long-term energy outlook.
The presidency added that resolving the dispute removes one of the most prominent legal and investment risks in Nigeria’s upstream oil sector and reinforces the government’s commitment to transparent governance and commercially viable investment frameworks.
