Nigeria and Eni Finalize OPL 245 Settlement, Unlocking Path to Bonga Southwest Aparo Deepwater Development

Credit: FCM

The Nigerian government and Italian energy company Eni have reached a full and final settlement of all claims related to Oil Prospecting Licence 245 (OPL 245), ending a protracted dispute and enabling the conversion of the licence into new development and exploration leases.

The agreement, signed today in Abuja, terminates the ongoing international arbitration proceeding at the International Centre for Settlement of Investment Disputes (ICSID). It converts OPL 245 into two Petroleum Mining Leases (PML 102 and PML 103) for development and two Petroleum Prospecting Leases (PPL 2011 and PPL 2012) for exploration. Nigerian Agip Exploration Limited (NAE), an Eni subsidiary, remains operator, in partnership with the Nigerian National Petroleum Company Limited (NNPC) and Shell Nigeria Exploration and Production Company Limited (SNEPCO).

Negotiations accelerated in recent months, involving key stakeholders including the Minister of State for Petroleum Resources Heineken Lokpobiri, Attorney General of the Federation and Minister of Justice Lateef Fagbemi (SAN), Special Adviser to the President on Energy Olu Verheijen, NNPC Limited Group Chief Executive Officer Engr. Bashir Bayo Ojulari, and senior executives from Eni.

President Bola Tinubu also hosted Eni CEO Claudio Descalzi on March 5 to discuss details of the resolution.

Project Scope and Infrastructure

The resolution clears the way for development of the Zabazaba and Etan deepwater fields in PML 102 and PML 103, which together hold approximately 500 million barrels of recoverable reserves. The project is planned around a 150,000 barrels of oil per day (kbopd) capacity floating production, storage and offloading (FPSO) vessel, with peak gas export of 200 million standard cubic feet per day (MMSCFD) routed to Nigeria LNG.

The two new exploration licences (PPL 2011 and PPL 2012) are strategically located to allow rapid tie-back to future Zabazaba-Etan infrastructure in the event of commercial discoveries.

Strategic and Economic Impact

The settlement follows months of intensified negotiations involving senior Nigerian officials and Eni leadership. It addresses previous fiscal and commercial disputes that had delayed progress for more than a decade, including a 2021 production tax credit issue.

The agreement is expected to deliver significant economic benefits:

Revenue Generation: Peak production of 150 kbopd could generate billions annually in government revenue through royalties, taxes and profit oil.
Gas Supply: Associated gas export of 140 MMscfd will strengthen Nigeria’s position as a major global LNG supplier.
Job Creation: More than 5,000 direct and indirect jobs during construction and operations, plus thousands more in supply chain and logistics.
Investment: Approximately $20 billion in foreign direct investment (FDI), helping address declining crude output.

The resolution ends a long-standing legal and reputational overhang that had deterred investors. It is widely viewed as a strong confidence signal to international capital, potentially catalyzing additional deepwater developments and reinforcing Nigeria’s attractiveness for large-scale energy investment.

Both sides described the agreement as a milestone in Nigeria-Eni relations, with emphasis on energy security, revenue generation, local content and long-term partnership.