Nigeria has concluded a landmark settlement with Eni and Nigerian Agip Exploration Limited over the disputed OPL 245 oil block, ending more than 15 years of legal battles.
The agreement clears the path for major deepwater development expected to significantly boost Nigeria’s oil production and restore investor confidence in the sector.
President Bola Tinubu has announced the settlement agreement between the Federal Government of Nigeria and Italian energy giant Eni, bringing to an end a long-running dispute over the oil block OPL 245.
The agreement, which also involves Nigerian Agip Exploration Limited, was reached during a meeting at the presidential office in Abuja attended by senior executives from the companies and government officials.
According to presidential spokesman Bayo Onanuga, the settlement resolves a dispute that has lasted more than 15 years and restores clarity to one of Nigeria’s most commercially promising deepwater assets.
“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,” Tinubu said.
Path Cleared for Major Deepwater Oil Development
With the dispute resolved, attention is expected to shift to the Zabazaba–Etan development project, a major deepwater initiative linked to OPL 245.
Officials say the project could add around 150,000 barrels per day to Nigeria’s oil production capacity once operational.
The settlement was signed in Abuja following discussions involving Eni’s Chief Executive Officer Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Region Mario Bello, Managing Director of Nigerian Agip Exploration Fabrizio Bolondi, and the President’s Special Adviser on Energy Olu Verheijen.
Verheijen said the settlement reflects reforms introduced under the Petroleum Industry Act, which aims to strengthen fiscal stability and governance in the oil sector.
“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,” she said.
Government officials say resolving the dispute removes a major legacy risk that has discouraged investment in Nigeria’s upstream oil sector for years.
Adoke Welcomes Settlement, Criticises Buhari Administration
Former Attorney-General of the Federation Mohammed Bello Adoke welcomed the government’s decision, describing it as long overdue.
Adoke said the settlement vindicated the actions taken during the administration of former President Goodluck Jonathan, when earlier efforts were made to resolve the dispute.
“I wholeheartedly welcome the decision of the Federal Government of Nigeria to finally implement the OPL 245 Resolution Agreements nearly 15 years after the administration of President Goodluck Jonathan resolved the knotty disputes between the concerned parties,” he said.
He also praised Tinubu for concluding the process, describing the decision as an act of statesmanship.
However, Adoke criticised the administration of former President Muhammadu Buhari, accusing it of undermining earlier efforts to settle the dispute.
“This is a further indictment of the President Muhammadu Buhari administration who decided to scandalise and criminalise the hard work we did in the national interest to resolve the disputes,” he said.
Adoke added that the prolonged legal battles and political controversies surrounding the deal subjected him to years of public attacks and legal challenges.
“It is most unfortunate that I was subjected to humiliation and defamation home and abroad for the patriotic role I played as the Attorney-General of the Federation and Minister of Justice in resolving the dispute,” he said.
Long-Running Oil Block Controversy
The OPL 245 block, considered one of Nigeria’s most valuable offshore oil assets, has been the subject of legal disputes and corruption allegations involving international oil companies and multiple court cases across several jurisdictions.
The controversy dates back to decisions made during the administration of former President Olusegun Obasanjo, including the revocation of the oil block in 2002.
In 2022, a ruling by the Commercial Court of England dismissed fraud allegations in the transaction involving the oil block and JPMorgan Chase, in a case where Nigeria had sought about $1.7 billion in damages.
The new settlement announced by the Tinubu administration is expected to clear the way for renewed investment and development of the deepwater resource, potentially strengthening Nigeria’s long-term energy outlook and boosting production capacity in the coming years.
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