President Bola Ahmed Tinubu has announced the successful resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245, a development expected to unlock major deepwater investment and boost Nigeria’s oil production capacity.
The President disclosed that the Federal Government reached a historic settlement agreement with Eni and Nigerian Agip Exploration Limited (NAEL), bringing to an end a dispute that has lingered for more than 15 years over one of Nigeria’s most commercially promising offshore oil blocks.
The announcement followed a high-level meeting at the Presidential Villa attended by the Chief Executive Officer of Eni, Claudio Descalzi; the company’s Chief Operating Officer, Guido Brusco; Head of Sub-Saharan Africa Region, Mario Bello; Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi; and the President’s Special Adviser on Energy, Olu Arowolo‑Verheijen.
According to a statement issued by the Special Adviser to the President on Information and Strategy, Bayo Onanuga, the agreement—signed in Abuja—formally resolves the long-standing dispute surrounding OPL 245 and restores clarity and stability to a key deepwater asset in Nigeria’s upstream sector.
With the dispute now settled, the Federal Government said the path has been cleared for a Final Investment Decision on the Zabazaba–Etan deepwater development project, which is projected to add about 150,000 barrels of crude oil per day to Nigeria’s production capacity.
President Tinubu described the settlement as a strategic milestone in the administration’s broader economic reform agenda aimed at resolving legacy disputes and rebuilding 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.
Also commenting on the agreement, Arowolo-Verheijen said the new settlement significantly improves on an earlier arrangement reached in 2011 and aligns with the regulatory framework established under the Petroleum Industry Act.
“The settlement also represents a significant improvement on the 2011 Resolution Agreement, reflecting the policy framework established under the Petroleum Industry Act (PIA) and the administration’s broader fiscal and governance reforms in the energy sector,” she said.
She added that the revised terms create a balanced outcome for both investors and the Nigerian government.
“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 added.
The presidential adviser further explained that resolving the OPL 245 dispute removes a major legacy risk that has long affected investor perception of Nigeria’s upstream petroleum industry.
“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 said.
The Presidency noted that the agreement forms part of a broader set of reforms introduced since 2023 to restore Nigeria’s competitiveness in global energy markets. These reforms, anchored on the Petroleum Industry Act and supported by targeted executive actions, have already begun attracting renewed investor interest and capital inflows into the country’s oil and gas sector.
President Tinubu also commended institutions and stakeholders who played key roles 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, NNPC Limited, the Office of the Special Adviser to the President on Energy, and the leadership of Eni.
According to the presidency, the successful resolution underscores the administration’s commitment to unlocking Nigeria’s strategic energy assets, attracting responsible investment, and ensuring that the country’s natural resources translate into economic growth, job creation and long-term prosperity for Nigerians.
