Manny Ita –
The Federal Government of Nigeria has officially approved a $10.3 billion investment by the Italian energy giant Eni to develop the Zabazaba and Etan deepwater fields. This landmark decision, confirmed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Africa Energy Council, marks a major turning point in Nigeria’s offshore oil strategy.
The total investment is divided between two primary assets located in the offshore OPL 245 block, which has recently been restructured following years of legal disputes. The Zabazaba Project (PML 103) has been allocated $7.3 billion and is expected to yield approximately 320 million barrels of oil. The Etan Field (PML 102) has been allocated $3.0 billion and holds an estimated 151 million barrels of oil.
The development plan centers on a Floating Production Storage and Offloading (FPSO) unit with a processing capacity of 150,000 barrels of oil per day. Additionally, the project is set to produce 200 million standard cubic feet of gas per day at peak, which will be exported through the Nigeria LNG (NLNG) facility. First oil production is officially projected to begin in 2029.
This approval is a core component of the government’s drive to increase national production to 3 million barrels per day by 2030. By focusing on deepwater assets, Nigeria aims to minimize the operational disruptions frequently encountered at onshore sites in the Niger Delta.
The approval follows a historic settlement reached in March 2026 between President Bola Ahmed Tinubu’s administration and Eni. The agreement ended over 15 years of international litigation and arbitration regarding the OPL 245 block. Under the new terms, the block was subdivided into two Petroleum Mining Leases and two Petroleum Prospecting Leases, allowing Nigerian Agip Exploration to lead operations alongside NNPC Ltd and Shell.
