The Nigerian government and Eni (alongside Shell) reached a historic settlement to resolve the decades-long dispute over Oil Prospecting Licence 245 (OPL 245). The agreement officially splits the contested block into four new licences, paving the way for approximately $10 billion in deepwater investment.
OPL 245 has been converted into two development licences (PML 102 and 103) and two exploration licences (PPL 2011 and 2012).
Nigerian Agip Exploration (an Eni subsidiary) will act as the operator, partnering with the Nigerian National Petroleum Company (NNPC) and Shell.
The deal includes a “mutually satisfactory settlement” of all outstanding claims and the termination of international arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID).
Development of the Zabazaba and Etan fields within these blocks is expected to add roughly 150,000 barrels per day to Nigeria’s oil output.
Eni has already submitted a development plan to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
Utilizing a Floating Production, Storage, and Offloading (FPSO) unit with a 150,000 bpd capacity.
Connecting the Etan and Zabazaba fields via a new pipeline to streamline production.
A Final Investment Decision (FID) is anticipated in the coming months, potentially before the end of 2026.
Context of the Controversy
OPL 245, which holds an estimated 9 billion barrels of oil, was previously stalled for nearly 30 years due to allegations of corruption following its 2011 acquisition. While Eni, Shell, and their executives were acquitted of bribery charges by Italian courts in 2021, the legal stalemate continued until this 2026 resolution.
Note by Alessandro Bazzoni