President Bola Ahmed Tinubu has overseen the successful resolution of the long-standing dispute over Oil Prospecting Licence (OPL) 245, marking a major milestone for Nigeria’s oil and gas industry and opening the door for a significant deepwater investment capable of boosting the country’s crude oil production.
The historic settlement agreement was reached between the Federal Government of Nigeria, ENI and Nigerian Agip Exploration Limited (NAEL) at a high-level meeting held in the President’s office in Abuja.
The meeting was 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 Special Adviser to the President on Energy, Olu Verheijen.
The agreement formally brings to an end a dispute that had lingered for more than 15 years over the ownership and development rights of the lucrative deepwater block.
With the settlement concluded, Nigeria is now set to move forward with the Zabazaba–Etan deepwater development project, a major offshore investment expected to add about 150,000 barrels per day to the nation’s crude oil production capacity once it reaches full output.
Industry analysts say the project could significantly strengthen Nigeria’s long-term energy outlook, improve government revenues, and help stabilise crude output at a time when the country is striving to meet its production targets.
Speaking on the development, President Tinubu described the agreement as a strategic breakthrough in his administration’s efforts to reform the energy sector, resolve legacy disputes, and restore investor confidence in Nigeria’s oil and gas industry.
According to the President, the successful settlement demonstrates Nigeria’s readiness to engage investors constructively while ensuring that the country’s natural resources are managed transparently and in the best interest of its citizens.
“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 investment,” Tinubu said.
Energy experts believe the resolution of the OPL 245 dispute removes one of the most prominent legal and commercial uncertainties that had discouraged large-scale investment in Nigeria’s deepwater sector for years.
Special Adviser to the President on Energy, Olu Verheijen, explained that the new settlement represents a significant improvement on the 2011 Resolution Agreement, aligning the project with the governance and fiscal provisions of the Petroleum Industry Act (PIA).
She noted that the revised framework provides a more balanced outcome for both investors and the Nigerian state.
“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,” Verheijen said.
She further explained that the agreement forms part of a broader set of reforms introduced 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 reinforced through targeted executive actions, have already begun attracting renewed investor interest and fresh capital into the country’s oil and gas sector.
According to Verheijen, resolving the OPL 245 dispute removes a significant legacy risk in Nigeria’s upstream petroleum industry and strengthens the government’s commitment to predictable regulation, transparent governance, and commercially viable investment frameworks.
President Tinubu commended the various institutions and stakeholders that 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 (NUPRC), NNPC Limited, and the leadership of ENI.
The President said the breakthrough reflects his administration’s determination to unlock Nigeria’s vast energy potential, attract responsible investments, and ensure that the nation’s natural resources translate into economic growth, employment opportunities, and long-term prosperity for Nigerians.
The resolution of the OPL 245 dispute is widely regarded as one of the most significant developments in Nigeria’s oil and gas sector in recent years, potentially paving the way for multi-billion-dollar investments in deepwater exploration and production.
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