Nigeria has broken up the controversial OPL 245 oil block into four new assets to be operated by Eni and Shell, a company linked to former Nigerian oil minister Dan Etete, the licence was later sold to Shell and Eni. The deal subsequently became the focus of one of the oil sector’s largest corruption trials. Italian prosecutors alleged that most of the US$1.3 billion purchase price for the licence was siphoned to politicians and middlemen.
Shell, Eni, and some of their former and current executives, including Claudio Descalzi, faced trial in Italy but were acquitted in 2021, having denied any wrongdoing. The companies declined to comment on the latest development, while Nigeria’s state-owned oil company, NNPC, also had no immediate comment.
The Nigerian government has signalled for years its determination to bring OPL 245 into production, recognising its strategic importance to the country’s oil output. The deepwater block is considered one of the nation’s largest remaining reserves and has significant potential for revenue generation and energy development once fully operational.
Dividing OPL 245 into four smaller blocks is expected to streamline management and development, providing clearer operational responsibilities for both Shell and Eni. The move could also help resolve lingering legal and regulatory uncertainties that have long deterred investment and delayed production.
Analysts said that bringing the blocks into production would represent a major boost for Nigeria’s oil sector, particularly as the country seeks to stabilise revenues amid fluctuating global oil prices and evolving energy market dynamics. The development also signals Nigeria’s broader effort to attract long-term investment into its deepwater projects while maintaining regulatory oversight and transparency.
Although precise timelines for production have not been disclosed, industry sources say that splitting the blocks may accelerate development by allowing operators to focus on smaller, more manageable areas with targeted drilling plans. Successful exploitation of OPL 245 could significantly increase Nigeria’s crude output and contribute to economic growth.
OPL 245’s history has been closely watched internationally due to its association with high-profile legal disputes and allegations of misappropriation. By restructuring the block and engaging established operators, Nigeria aims to move past the decades-long controversy while maximising the block’s economic potential.
The deal reflects a broader trend in Africa, where governments are increasingly revisiting long-stalled oil and gas licences and seeking partnerships with experienced international energy companies to unlock stranded reserves. Analysts expect that OPL 245’s development will not only enhance Nigeria’s production profile but could also serve as a model for resolving similarly disputed or dormant assets across the continent.
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For now, all eyes remain on the official announcement and the signing of final contracts, which could mark the beginning of a new chapter in Nigeria’s oil industry, bringing one of its most valuable offshore resources into productive use after nearly three decades of uncertainty.
