Tinubu Seals OPL 245 Deal, Boosts Oil Output

President Bola Tinubu has heralded a landmark settlement resolving the decades-long Oil Prospecting Licence (OPL) 245 dispute, a move set to unleash major investments in Nigeria’s deepwater oil sector. The agreement, finalized in Abuja between the Federal Government, Italy’s ENI, and Nigerian Agip Exploration Limited (NAEL), ends over 15 years of legal wrangling that stalled one of the nation’s prime offshore assets. This breakthrough paves the way for the Final Investment Decision on the Zabazaba-Etan fields, projected to ramp up daily crude output by about 150,000 barrels.

High-Level Talks in Abuja

The deal was inked during a key meeting in Tinubu’s office, attended by ENI’s top brass including CEO Claudio Descalzi, COO Guido Brusco, Sub-Saharan head Mario Bello, and NAEL Managing Director Fabrizio Bolondi. Also present was Presidential Special Adviser on Energy, Olu Arowolo-Verheijen, who hailed the terms as a “significant improvement” over the flawed 2011 resolution. She emphasized how the updated framework aligns with the Petroleum Industry Act (PIA), balancing investor needs with stronger safeguards for federal revenues.

Tinubu described the pact as a “strategic milestone” in his economic reforms, signaling to global players that Nigeria prioritizes transparency, rule of law, and stable investment climates. “This resolution sends a clear signal… creating a stable environment for long-term capital,” he stated, crediting reforms since 2023 for reviving oil and gas inflows.

Legacy Dispute Unraveled

OPL 245, among Nigeria’s most lucrative deepwater blocks, has been mired in controversy since the early 2000s, involving corruption allegations, court battles in Italy and beyond, and failed settlements. The 2011 attempt collapsed amid scrutiny, leaving the Zabazaba-Etan prospects—holding vast reserves—dormant and costing billions in lost revenue. Thursday’s accord restores title clarity, eliminates upstream risks, and aligns with PIA-driven governance upgrades.

ADVERTISEMENT

Arowolo-Verheijen noted the revisions ensure “stronger value accretion” for Nigeria while giving ENI the predictability needed for deepwater capex. This fits broader efforts to make the sector competitive globally, drawing fresh capital after years of investor hesitation.​

Stakeholders Applauded

Tinubu praised key players like the Attorney General’s Office, Petroleum Ministry, Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited, and ENI executives for their roles. The resolution underscores his administration’s push to monetize energy assets for jobs, growth, and prosperity, potentially lifting Nigeria’s OPEC quota and fiscal health.