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Unlocks Major Deepwater Investment
- Safiu Kehinde
President Bola Tinubu has resolved the 15 years Oil Prospecting License (OPL) 245 dispute between the Federal Government of Nigeria, ENI, and the Nigerian Agip Exploration Limited (NAEL).
Tinubu announced the resolution of the dispute at the meeting in his office and attended by the Chief Executive Officer of Eni, Claudio Descalzi; the Chief Operating Officer, Guido Brusco; and the Head of Sub-Saharan Region, Mario Bello.
Also in attendance were the Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi; and the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.
With all parties signing the agreement for the resolution of the dispute, the according to a statement issued on Thursday by the Special Adviser to the President on Information and Strategy, will pave the way for the development of one of Nigeria’s most significant deepwater resources.
It reportedly restores clarity and stability to an asset widely recognised as one of Nigeria’s most commercially promising deepwater blocks while creating a pathway for Final Investment Decision on the Zabazaba–Etan development.
The project, according to Onanuga, is capable of adding approximately 150,000 barrels per day to Nigeria’s production capacity and strengthening the country’s long-term energy outlook.
In his remark, Tinubu described the agreement as a strategic milestone in Nigeria’s economic reform agenda.
The President, as quoted in the statement, held that the agreement placed Nigeria in a position of trust before global investors.
“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.
On her part, Olu Arowolo-Verheijen, the Presidential adviser on energy, held that that settlement showcased improvement on the 2011 Resolution Agreement while providing investors with the clarity and predictability required to proceed with major deepwater investments.
“The settlement also 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 said.
The agreement, the Presidential aide noted, 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 Petroleum Industry Act 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-Verjeihen further said.