Tinubu brokers historic truce on OPL 245 to boost Nigeria’s oil output

President Bola Ahmed Tinubu has announced the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245, clearing the way for the development of one of Nigeria’s most commercially promising deepwater oil assets.

The agreement was reached between the Federal Government of Nigeria, Italian energy company Eni, and Nigerian Agip Exploration Limited during a meeting at the Presidential Villa in Abuja attended by Eni’s Chief Executive Officer Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Africa Mario Bello, Managing Director of NAEL Fabrizio Bolondi, and the President’s Special Adviser on Energy Olu Verheijen.

The settlement brings to an end a dispute that has lasted more than 15 years and restores clarity to the ownership and development framework of OPL 245, widely regarded as one of Nigeria’s most valuable deepwater oil blocks.

With the dispute resolved, stakeholders can now proceed toward a Final Investment Decision on the Zabazaba–Etan deepwater development project, which is projected to add about 150,000 barrels per day to Nigeria’s crude oil production capacity.

Tinubu described the agreement as a strategic milestone for Nigeria’s economic reform agenda and an important step toward rebuilding investor confidence in the country’s energy sector.

“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.

Energy adviser Verheijen said the settlement improves on the earlier 2011 resolution agreement and reflects the policy framework introduced under the Petroleum Industry Act, alongside the administration’s broader fiscal and governance reforms in the oil and gas sector.

She explained that the revised terms provide investors with the clarity needed to move forward with major deepwater investments while also ensuring stronger value for the Nigerian federation.

According to the presidency, the agreement forms part of broader reforms implemented since 2023 to strengthen Nigeria’s competitiveness in global energy markets and attract fresh investment into the oil and gas industry.

Tinubu commended institutions that contributed to the settlement, including the Office of the Attorney-General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, and NNPC Limited.

The presidency said the resolution removes one of the most prominent legacy risks in Nigeria’s upstream sector and reinforces the government’s commitment to transparent regulation and commercially viable investment frameworks.