By Muhammed Abubakar, Reporting
PRESIDENT Bola Tinubu has announced the historic resolution of the long-standing legal and commercial dispute surrounding Oil Prospecting Licence (OPL) 245, paving the way for a major deepwater development that could boost Nigeria’s crude production by 150,000 barrels per day.
The settlement agreement was finalised in Abuja on Thursday between the Federal Government, ENI, and Nigerian Agip Exploration Limited (NAEL), bringing to a close a controversy that has dogged one of Nigeria’s most promising offshore assets for more than 15 years.
President Tinubu made the announcement during a meeting in his office attended by ENI’s Chief Executive Officer, Claudio Descalzi; the company’s Chief Operating Officer, Guido Brusco; the Head of Sub-Saharan Region, Mario Bello; the Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi; and the Presidential Adviser on Energy, Olu Arowolo-Verheijen.
With the dispute now settled, the pathway is cleared for a Final Investment Decision on the Zabazaba–Etan development, a project capable of significantly enhancing Nigeria’s production capacity and strengthening the nation’s long-term energy outlook.
‘A Clear Signal to Global Investors’
According to Bayo Onanuga, Special Adviser to the President (Information and Strategy), President Tinubu described the agreement as a strategic milestone in Nigeria’s economic reform agenda, reaffirming his administration’s commitment to resolving legacy disputes, restoring investor confidence, and ensuring that the country’s natural resources deliver sustainable value to the Nigerian people.
“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.
Presidential Adviser on Energy, Olu Arowolo-Verheijen, noted that the settlement 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.
“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.
Part of Wider Reforms
The agreement forms part of a wider programme of reforms undertaken since 2023 to restore Nigeria’s competitiveness in global energy markets. These reforms, anchored in the PIA and supported by targeted executive actions, have already contributed to renewed investor interest and significant capital inflows into the nation’s oil and gas 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,” Arowolo-Verheijen further stated.
President Tinubu commended all institutions and stakeholders who contributed to 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 successful resolution underscores the Tinubu administration’s determination to unlock Nigeria’s strategic energy assets, attract responsible investment, and ensure that the nation’s resources translate into growth, jobs, and long-term prosperity for Nigerians.
What's your reaction?
