Eni has confirmed it has reached an agreement with the Nigerian government to split the controversial OPL 245 oilfield into four separate licences, a move aimed at resolving long-running disputes surrounding one of Africa’s most contested energy assets.
The Italian energy group said the agreement provides for the conversion of the existing offshore block into two development licences and two exploration licences, allowing progress toward potential production after years of legal and political uncertainty.
The deal also includes what the company described as a “mutually satisfactory settlement” of all claims linked to the block and the termination of an international arbitration procedure related to the asset.
Under the new structure, Nigerian Agip Exploration Limited, a subsidiary of Eni, will act as the operator of the licences.
State oil company Nigerian National Petroleum Company Limited and energy giant Shell will participate as partners in the project.
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The agreement confirms earlier reports that Nigeria had decided to divide the offshore block into multiple assets as part of efforts to unlock development of the field while resolving lingering legal disputes.
The OPL 245 block, located offshore Nigeria in the Gulf of Guinea, is believed to contain substantial oil reserves and has long been considered one of the country’s most valuable undeveloped petroleum assets.
However, the block became the focus of one of the oil industry’s most high-profile corruption cases, involving allegations linked to the 2011 purchase of the licence by Eni and Shell.
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Italian prosecutors accused the two companies of being aware that much of the $1.3 billion paid for the block would be diverted to Nigerian politicians and intermediaries.
Both companies denied wrongdoing.
In 2021, a court in Milan acquitted Eni, Shell and several current and former executives of corruption charges, bringing an end to a lengthy trial that had drawn global attention to the governance of oil deals in resource-rich nations.
Despite the acquittal, uncertainty over the block’s future and ongoing legal disputes had continued to delay development.
The new agreement aims to resolve those issues and pave the way for exploration and production activities.
Nigeria, Africa’s largest oil producer, has been seeking to revive investment in its upstream sector after years of regulatory uncertainty and declining output.
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The government has also been working to settle legacy disputes with international oil companies in order to unlock new capital for exploration and production projects.
For Eni, the deal reinforces its long-standing presence in the West African nation.
The Italian group has operated in Nigeria since 1962 and is involved in a range of activities including oil and gas exploration, production, power generation and community development programmes.
Through its local subsidiaries and joint ventures, Eni has remained a significant player in Nigeria’s energy sector, particularly in offshore operations.
The company has also been expanding its natural gas projects in the country, positioning them as part of a broader strategy to support Nigeria’s domestic energy needs while supplying international markets.
Analysts say resolving the long-running dispute over OPL 245 could help restore investor confidence in Nigeria’s oil sector, which has faced challenges ranging from security issues and oil theft to regulatory changes.
If successfully developed, the block could contribute significantly to Nigeria’s future oil output and provide fresh momentum for offshore exploration in the Gulf of Guinea.
The restructuring of the licence into four separate assets is expected to create a clearer framework for development, enabling partners to move forward with exploration and potential production plans after more than a decade of controversy surrounding the field.
