The long-drawn battle over Oil Prospecting Licence (OPL) 245 ended yesterday.

President Bola Ahmed Tinubu facilitated the truce, a development expected to unlock major deepwater investment and significantly boost Nigeria’s crude oil production.

On resumption of operation, it is capable of adding 150,000 barrels per day to Nigeria’s output.

The country currently produces between 1.68 million and 1.71 million barrels per day (bpd).

The President has a target of at least two million barrels per day.

The settlement agreement, reached between the Federal Government, ENI, and Nigerian Agip Exploration Limited (NAEL), was concluded during a meeting presided over by the President in his office in Abuja.

The meeting was attended by ENI’s Chief Executive Officer, Claudio Descalzi; the company’s Chief Operating Officer, Guido Brusco; Head of Sub-Saharan Region, Mario Bello; Managing Director of Nigerian Agip Exploration Limited, Fabrizio Bolondi; and the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.

According to a statement by the Special Adviser to the President on Information and Strategy, Mr Bayo Onanuga, the agreement ends a 15-year dispute over the ownership and development rights to the oil block.

The settlement restores clarity and stability to the highly prized deepwater asset, widely regarded as one of Nigeria’s most commercially promising offshore blocks.

With the dispute now resolved, the parties are expected to move towards a Final Investment Decision on the Zabazaba-Etan development project.

It is a major offshore project expected to add about 150,000 barrels per day to Nigeria’s production capacity when operational.

President Tinubu described the agreement as a major milestone in the administration’s economic reform agenda.

He noted that it reflects the government’s commitment to resolving legacy disputes and strengthening 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, uphold the rule of law, and create a stable environment for long-term capital,” the President said.

He added that the settlement reinforces the government’s determination to ensure that Nigeria’s natural resources generate sustainable value for the country and its people.

Providing further insight into the agreement, the President’s Special Adviser on Energy, Mrs Arowolo-Verheijen, explained that the settlement significantly improves on the earlier 2011 resolution framework.

Related News

She said the new terms reflect the regulatory and fiscal reforms introduced under the Petroleum Industry Act (PIA), which have reshaped Nigeria’s governance and investment landscape in the oil and gas sector.

“The settlement also represents a significant improvement on the 2011 Resolution Agreement, reflecting the policy framework established under the Petroleum Industry Act and the administration’s broader fiscal and governance reforms in the energy sector,” Arowolo-Verheijen said.

She added that the revised arrangement strikes a balance between providing investors with the clarity required to undertake major deepwater investments and ensuring stronger value accrual and safeguards for the Nigerian Federation.

According to her, the resolution removes one of the most prominent legacy risks that has long weighed on Nigeria’s upstream oil sector.

“By resolving the OPL 245 dispute, the Federal Government has removed one of the most prominent legacy risks in Nigeria’s upstream sector.

“It reinforced its commitment to predictable regulation, transparent governance, and commercially viable investment frameworks,” she said.

The settlement is also part of a broader programme of reforms initiated by the Tinubu administration since 2023 to reposition Nigeria as a competitive destination for global energy investment.

These reforms, anchored on the Petroleum Industry Act and supported by targeted executive actions, have already helped stimulate renewed investor interest and attract fresh capital into Nigeria’s oil and gas sector.

Industry analysts have long viewed the OPL 245 dispute as a major obstacle to unlocking the full potential of the block, which contains vast deepwater reserves.

The Zabazaba-Etan project, which will now move closer to development, is expected not only to increase Nigeria’s oil production but also generate jobs, stimulate local industry participation, and boost government revenues.

President Tinubu commended the various institutions and stakeholders who worked to achieve the settlement.

They include the Office of the Attorney General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited, and the leadership of ENI.

He noted that the successful resolution demonstrates the administration’s determination to unlock Nigeria’s strategic energy assets and translate them into tangible economic benefits.

The President further emphasised that responsible investment and transparent governance would remain central pillars of the government’s strategy for managing the nation’s natural resources.

According to him, the agreement represents not only the resolution of a complex legal dispute but also a decisive step toward strengthening Nigeria’s long-term energy outlook and economic growth prospects. (The Nation)

Update news