In a landmark move for Nigeria’s energy sector, President Bola Ahmed Tinubu has officially announced the resolution of the OPL 245 dispute, ending over 15 years of legal entanglements and commercial paralysis.
The settlement, signed in Abuja between the Federal Government of Nigeria, ENI, and Nigerian Agip Exploration Limited (NAEL), effectively clears the hurdles for one of the most promising deepwater assets in Africa.
A Strategic Milestone for Energy Security
The resolution is expected to trigger immediate activity in the upstream sector, specifically paving the way for the Final Investment Decision (FID) on the Zabazaba–Etan development. This project is projected to inject approximately 150,000 barrels per day into Nigeria’s oil production, significantly boosting the nation’s revenue and long-term energy security.
Speaking on the breakthrough, President Tinubu emphasized that the deal is a cornerstone of his administration’s economic reform agenda.
“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,” President Tinubu stated.
Improved Terms Under the Petroleum Industry Act
The new agreement is touted as a superior version of the previous 2011 Resolution Agreement. According to Olu Arowolo-Verheijen, the Special Adviser to the President on Energy, the deal aligns with the Petroleum Industry Act (PIA) to ensure better safeguards for the Nigerian people.
“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 noted.
Restoring Investor Confidence
The OPL 245 block has long been viewed as a litmus test for Nigeria’s regulatory environment. By resolving this legacy risk, the government aims to restore Nigeria’s competitiveness in the global market, which has seen a shift in capital toward more stable jurisdictions in recent years.
The President extended commendations to several key institutions for their roles in the negotiation, including the Office of the Attorney General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and NNPC Limited
Economic Outlook and Job Creation
Beyond the immediate increase in oil barrels, the settlement is expected to stimulate the broader economy by attracting responsible investment and creating thousands of high-skilled jobs. The administration maintains that this move is part of a wider program initiated in 2023 to ensure the nation’s natural resources translate into tangible growth and prosperity for all Nigerians.
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