The federal government has announced the resolution of a decades-long dispute over Oil Prospecting Licence (OPL) 245, one of Nigeria’s most commercially valuable deepwater oil blocks.
The presidency stated that the agreement could enable development, adding around 150,000 barrels per day to the nation’s oil production capacity. The settlement was described as “historic,” clearing the way for investment in the Zabazaba–Etan project.
OPL 245, located offshore in the Niger Delta, holds an estimated nine billion barrels of crude but has remained largely untapped due to corruption, legal battles, and multi-country disputes involving Nigeria, Italy, the UK, and the US. Past controversies include allegations against former Minister Dan Etete, disputes between Shell, Eni, Malabu Oil and Gas, and multiple court cases, arbitration proceedings, and criminal investigations.
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The 2011 Resolution Agreement, brokered under President Goodluck Jonathan, partially addressed the disputes but left lingering concerns over governance, payments, and investor confidence.
The current administration’s settlement, attended by top executives from Shell and Eni, is framed as an improvement on the 2011 terms, aligned with reforms under the Petroleum Industry Act (PIA).
Presidential advisers emphasised that the agreement restores clarity and stability, boosts investor confidence, and ensures Nigeria’s natural resources deliver sustainable economic value.
The resolution is part of broader efforts to reform the energy sector, attract foreign capital, and remove legacy risks that have historically hampered deepwater oil development in Nigeria.
In essence, the settlement marks a strategic milestone for Nigeria, signalling commitment to transparent governance, fiscal reform, and the unlocking of long-delayed oil production potential.
