President Bola Ahmed Tinubu has announced the resolution of the long-running dispute over Oil Prospecting Licence 245 (OPL 245), a development expected to unlock major deepwater investment and boost Nigeria’s oil production capacity.
The settlement agreement was reached between the Federal Government, Eni and Nigerian Agip Exploration Limited (NAEL), bringing to an end a dispute that has lasted more than 15 years.
The announcement was made during a meeting at the Presidential Villa in Abuja attended by the Chief Executive Officer of Eni, Claudio Descalzi; the company’s Chief Operating Officer, Guido Brusco; Head of the Sub-Saharan Region, Mario Bello; Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi; and the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.
According to the presidency, the agreement restores clarity and stability to one of Nigeria’s most commercially promising deepwater oil assets.
With the dispute resolved, the path is now clear for a Final Investment Decision on the Zabazaba–Etan deepwater project, which is projected to add about 150,000 barrels of oil per day to Nigeria’s production capacity.
Tinubu described the settlement as a major step in Nigeria’s economic reform agenda.
“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.
Energy adviser Arowolo-Verheijen said the new agreement improves on the earlier 2011 settlement and reflects the regulatory framework introduced under the Petroleum Industry Act.
“The settlement 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,” she said.
She added that the revised terms balance investor interests with national benefits.
“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,” Arowolo-Verheijen said.
According to her, resolving the dispute removes one of the biggest legacy risks in 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 and reinforced its commitment to predictable regulation, transparent governance, and commercially viable investment frameworks,” she added.
The presidency emphasizes the agreement forms part of broader reforms implemented since 2023 to strengthen Nigeria’s competitiveness in global energy markets, attract investment, and unlock the country’s strategic oil and gas assets.
Tinubu also commended key institutions involved in achieving the settlement, including the Office of the Attorney-General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, and NNPC Limited.