Tinubu, Eni CEO Descalzi Seal OPL 245 Settlement, Clearing Path for Zabazaba-Etan Development and Expanded Deepwater Production

President Bola Ahmed Tinubu and Eni CEO Claudio Descalzi have met in Abuja to to formalize the full resolution of the long-running OPL 245 dispute and launch a new phase of deep offshore investment in Nigeria.

The agreement ends all outstanding claims related to Oil Prospecting Licence 245 (OPL 245) and terminates the international arbitration proceeding at the International Centre for Settlement of Investment Disputes (ICSID).

As a direct result, the licence has been converted 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), a wholly owned Eni subsidiary, remains operator, partnering with the Nigerian National Petroleum Company Limited (NNPC) and Shell Nigeria Exploration and Production Company Limited (SNEPCO).

The conversion is expected to unlock the Zabazaba and Etan deepwater fields in PML 102 and PML 103. The combined fields hold approximately 500 million barrels of recoverable reserves. Development plans centre on a 150,000 barrels of oil per day (kbopd) 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 project leverages Eni’s proven fast-track development expertise and is expected to create thousands of direct and indirect jobs, boost government revenue through royalties and taxes, and support local content targets in line with the Nigerian Oil and Gas Industry Content Development Act.

The two new exploration licences (PPL 2011 and PPL 2012) offer significant upside potential and are strategically located to tie back to future Zabazaba-Etan infrastructure, enabling rapid monetization of any commercial discoveries.

President Tinubu and CEO Descalzi also reviewed Eni’s wider Nigerian portfolio, which includes ongoing production from the Abo and Bonga fields and a 10.4% stake in Nigeria LNG. Eni recently increased its interest in deepwater block OML 118 to 15%, further consolidating its position in Nigeria’s offshore sector.

Eni has maintained a continuous presence in Nigeria since 1962, operating across exploration, production, power generation and community development. Current equity production averages approximately 55,000 barrels of oil equivalent per day (boepd), with extensive programmes in education, healthcare, energy access, vocational training and infrastructure supporting host communities.

Shell’s Nigerian Operations Context

Shell, one of Eni’s partners in the converted licences, has been gradually reducing its onshore footprint in Nigeria while maintaining a strong deepwater position through Shell Nigeria Exploration and Production Company Limited (SNEPCO). The company divested several onshore oil mining leases in recent years, focusing instead on high-value deep offshore assets such as Bonga and the upcoming Bonga South-West Aparo project. Shell’s continued participation in PML 102 and PML 103 underscores confidence in Nigeria’s deepwater potential despite broader divestment trends in the onshore and shallow-water segments.

Economic Impact

The OPL 245 settlement and subsequent development of Zabazaba-Etan are expected to deliver substantial economic benefits. Industry estimates project peak production of 150 kbopd could generate between $2 – 3 billion annually in government revenue (royalties, taxes, profit oil) at current oil prices, depending on fiscal terms and Brent benchmarks. The project is also anticipated to create thousands of direct construction and operations jobs, plus tens of thousands of indirect jobs in the supply chain, logistics and service sectors. Gas export to Nigeria LNG will further support the country’s position as a major global LNG supplier.

Longer-term, the conversion and new licences are seen as a confidence signal to international investors, potentially unlocking additional deepwater investment and helping Nigeria reverse declining crude output (currently around 1.3 – 1.4 million bpd against an OPEC quota of 1.8 million bpd). The agreement ends a decade-long legal and reputational overhang on OPL 245 that had deterred investment and delayed development.

Both leaders described the meeting as a milestone in Nigeria-Eni relations, with Tinubu emphasizing energy security, revenue generation and local content, while Descalzi reaffirmed Eni’s long-term commitment to responsible development in Nigeria.