President Tinubu Resolves 15-Year OPL 245 Dispute; Paves Way for Zabazaba–Etan Deepwater Project

Nigeria settles the 15-year OPL 245 dispute, paving the way for the 150,000 bpd Zabazaba–Etan deepwater project and boosting energy investment.

By: AXL Media

Published: Mar 6, 2026, 5:24 AM EST

Source: The information in this article was sourced from Business Hallmark

Historic Settlement Ends 15 Years of Energy Sector Gridlock

In a major breakthrough for Nigeria's oil and gas industry, President Bola Tinubu on Thursday, March 5, 2026, announced the formal resolution of the long-standing dispute over Oil Prospecting Licence (OPL 245). The settlement was finalized at a high-level meeting in the Presidential Villa, Abuja, attended by top executives from Eni, including CEO Claudio Descalzi and COO Guido Brusco. The agreement effectively closes a chapter of legal instability that has hampered development in one of the nation's most promising deepwater assets since 2011.

Strategic Impact: 150,000 Barrels Per Day Target

The most immediate consequence of this resolution is the greenlighting of the Zabazaba–Etan development project. With legal hurdles removed, the Final Investment Decision (FID) is now within reach for a project capable of adding 150,000 barrels per day (bpd) to Nigeria’s crude output. This surge in production is viewed as a critical component of the administration’s plan to restore Nigeria’s status as a top-tier energy producer and stabilize the nation's long-term energy outlook.

Alignment with the Petroleum Industry Act (PIA)

Special Adviser on Energy, Olu Arowolo-Verheijen, highlighted that the new agreement is a marked improvement over the 2011 Resolution Agreement. The terms have been revised to align strictly with the Petroleum Industry Act (PIA) and current fiscal reforms. By ensuring that the contract adheres to modern governance standards, the administration aims to protect the Federation's interests while providing the "clarity and predictability" required by international oil companies (IOCs) for long-term capital deployment.