President Bola Tinubu has announced the successful resolution of the long-standing dispute over Oil Prospecting Licence (OPL) 245, following a historic settlement agreement between the Federal Government of Nigeria, ENI, and Nigerian Agip Exploration Limited (NAEL).
The announcement came on Thursday after a meeting in the President’s office attended by top executives of ENI, including Chief Executive Officer Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Region Mario Bello, and Managing Director of Nigerian Agip Exploration Fabrizio Bolondi. Also present was the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.
The agreement, signed in Abuja, brings to a close a dispute that has lingered for over 15 years over one of Nigeria’s most commercially promising deepwater blocks. It restores clarity and stability to the asset, paving the way for its development.
With the resolution now concluded, the pathway is clear for the Final Investment Decision on the Zabazaba–Etan development project, which is expected to add approximately 150,000 barrels per day to Nigeria’s production capacity.
President Tinubu described the agreement as a strategic milestone in Nigeria’s economic reform agenda, reaffirming his administration’s commitment to resolving legacy disputes and restoring investor confidence.
“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.
Improved Terms Under PIA Framework
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 stated.
The agreement is 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 Nigeria’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 added.
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.
