Nigeria’s Federal Government has restructured the long-disputed OPL 245 oil block into four separate assets to be operated by Eni and Shell, a move that could pave the way for the development of one of the country’s largest undeveloped deepwater reserves.
According to a source familiar with the matter who spoke to Reuters, the decision effectively clears a path for investment in the offshore field after nearly three decades of legal battles and political controversy.
OPL 245 has remained dormant amid multiple court cases and investigations spanning Nigeria, Italy and other jurisdictions. The source, who requested anonymity because they were not authorised to speak publicly ahead of an official announcement, said agreements relating to the restructured assets are expected to be signed from Monday.
“The Federal Government has broken up the OPL 245 oil block into four new assets to be operated by Eni and Shell, a source told Reuters, potentially settling the future of the field at the centre of one of the oil industry’s biggest historic corruption trials. The agreement clears the way for the development of OPL 245, one of Nigeria’s biggest deepwater reserves that has remained untapped for almost three decades amid overlapping lawsuits in multiple countries.”
The restructuring signals a significant shift in government efforts to resolve the protracted dispute and bring the asset into production, with authorities seeking to unlock additional crude output and attract fresh investment into the deepwater segment.
The licence was initially awarded in 1998 to Malabu Oil and Gas, a firm linked to former petroleum minister Dan Etete. It was later acquired by Shell and Eni in a transaction valued at about $1.3 billion.
However, the deal became one of the oil industry’s most high-profile corruption cases. Italian prosecutors alleged that a portion of the purchase price was diverted to politicians and intermediaries. The claims led to a lengthy trial in Milan involving both companies and several executives, including Eni Chief Executive Officer Claudio Descalzi.
In 2021, an Italian court acquitted Eni, Shell and the executives of all wrongdoing, concluding the European criminal proceedings. The companies had consistently denied the allegations.
As of the time of filing, neither Eni nor Shell had issued comments on the latest restructuring. Nigeria’s state oil company, Nigerian National Petroleum Company Limited, had also not released an official statement.
Industry observers say breaking the block into four assets could streamline operational and commercial arrangements, reduce residual legal uncertainty and fast-track final investment decisions.
If implemented successfully, the development of OPL 245 could significantly boost Nigeria’s crude production capacity and strengthen government revenue at a time of renewed focus on expanding oil output.
