President Tinubu resolves 15-year OPL 245 dispute with Eni and Agip

KEY POINTS

• President Bola Tinubu has announced a successful settlement agreement between the Federal Government, Eni, and Nigerian Agip Exploration Limited over Oil Prospecting Licence (OPL) 245.
• The resolution ends a 15-year legal and operational dispute, clearing the path for the development of one of Nigeria’s most significant deepwater assets.
• The agreement enables a Final Investment Decision (FID) on the Zabazaba–Etan deepwater project, which is expected to add 150,000 barrels per day to national production.
• Special Adviser on Energy, Olu Verheijen, noted that the revised terms reflect reforms introduced under the Petroleum Industry Act (PIA).

MAIN STORY

President Bola Tinubu on Thursday formalized the conclusion of a long-standing settlement regarding the controversial Oil Prospecting Licence (OPL) 245. In a meeting attended by Eni CEO Claudio Descalzi and other top executives at the State House, the President signaled the end of a 15-year dispute that had stalled investment in the block.

The settlement is being hailed as a “strategic milestone” in the administration’s economic reform agenda, aimed at resolving legacy issues that have historically deterred global investors.

The resolution of OPL 245 is expected to trigger immediate activity in Nigeria’s upstream sector. Specifically, the pathway is now clear for the Final Investment Decision (FID) on the Zabazaba–Etan deepwater project. This project is a critical component of Nigeria’s energy security strategy, with the potential to boost the country’s oil production capacity by approximately 150,000 barrels per day.

According to the Special Adviser to the President on Energy, Olu Verheijen, the new agreement was reached within the framework of the Petroleum Industry Act (PIA). These revised terms are designed to provide investors with much-needed “clarity and predictability” while ensuring that the Nigerian federation captures stronger value from its natural resources. The President commended the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPC Limited for their roles in brokering the deal, reiterating that Nigeria is now prepared to uphold the rule of law to attract responsible, long-term investment.

EXPECTED IMPACT OF THE SETTLEMENT

• Production Boost: Addition of 150,000 barrels per day to Nigeria’s oil output.
• Investment Restoration: Revitalization of the Zabazaba–Etan deepwater project.
• Investor Confidence: Sending a signal to the global market that legacy legal issues are being resolved transparently.
• Legal Clarity: Establishing a stable environment for future deepwater exploration under the PIA.
• Economic Reform: Unlocking energy assets to drive national revenue growth.

WHAT’S BEING SAID

• “This resolution sends a clear signal to global investors that Nigeria is prepared to address legacy issues transparently and uphold the rule of law,” stated President Bola Tinubu.
• “The revised terms provide investors with clarity and predictability while ensuring stronger value for the federation,” noted Olu Verheijen, Special Adviser to the President on Energy.
• “This settlement would help restore investor confidence and create a stable environment for long-term investment.”

WHAT’S NEXT

• Eni and its partners are expected to move swiftly toward the Final Investment Decision (FID) for the Zabazaba–Etan project infrastructure.
• The NUPRC will oversee the technical transition of the license to ensure it aligns with the updated environmental and operational standards of the PIA.
• Industry analysts will monitor the “Zabazaba effect” to see if other international oil companies (IOCs) accelerate their own stalled deepwater projects in Nigerian waters.

BOTTOM LINE

The Bottom Line is that the 15-year saga of OPL 245 has finally concluded with a compromise that favors national production. By clearing the legal hurdles for the Zabazaba–Etan project, President Tinubu is betting that a 150,000-barrel-per-day boost will be the catalyst needed to restore Nigeria’s standing as a top-tier destination for energy investment.

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