The Federal Government of Nigeria has reached a landmark resolution to the long-standing dispute over Oil Prospecting Licence (OPL) 245, one of the country's largest untapped deepwater oil blocks, by splitting it into four new assets to be operated by Italian energy major Eni and Shell.
The agreement, reported on March 2, 2026, ends nearly three decades of legal battles, corruption allegations, and stalled development surrounding the block, which is estimated to hold up to 9 billion barrels of oil equivalent reserves.
According to sources familiar with the matter cited by Reuters and other outlets, the restructuring clears the path for production in this prized deepwater field that has remained undeveloped amid overlapping lawsuits in multiple jurisdictions.
The OPL 245 saga dates back to its 1998 award to Malabu Oil and Gas, linked to former Petroleum Minister Dan Etete. A 2011 deal saw Malabu relinquish the licence back to the government in exchange for payments, with Eni and Shell jointly acquiring rights for about $1.3 billion, a transaction that triggered international probes into alleged bribery involving over $1 billion.
Courts in Italy acquitted Eni and Shell executives in 2021, and recent Nigerian rulings (including a 2025 Court of Appeal decision) have favored the companies.
The new arrangement provides a balanced outcome, offering investors predictability while enhancing value for Nigeria, aligning with reforms under the Petroleum Industry Act (PIA) of 2021 and President Bola Tinubu's push for fiscal stability and investor confidence in the energy sector.
The split paves the way for potential development of projects like Zabazaba-Etan, which could add significant production capacity potentially up to 150,000 barrels per day—to Nigeria's output once a Final Investment Decision is reached.
President Tinubu's administration has highlighted the resolution as a signal to global investors of Nigeria's commitment to transparency, rule of law, and resolving legacy issues.
Officials, including the Ministry of Petroleum Resources, Attorney General's Office, NUPRC, and NNPC Limited, contributed to the breakthrough.
Final contracts for the restructured blocks were expected to begin signing shortly after the announcement, marking a major step in revitalizing Nigeria's oil and gas industry amid broader economic reforms since 2023.
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