President Bola Tinubu has announced the successful resolution of a 15-year legal and operational stalemate over Oil Prospecting Licence (OPL) 245, following a settlement agreement between the Federal Government, Eni, and Nigerian Agip Exploration Limited. The announcement was made on Thursday, March 5, 2026, during a high-level meeting in Abuja attended by Eni’s Chief Executive Officer, Claudio Descalzi, and other senior executives of the Italian energy major.
The structural and economic consequence of this settlement is the immediate activation of the Zabazaba–Etan deepwater project. Long stalled by litigation and controversy, the project is now positioned for a Final Investment Decision (FID). Once operational, the field is projected to inject approximately 150,000 barrels per day into Nigeria’s national oil production, providing a significant boost to the country’s revenue and global energy standing.
Analytically, this agreement represents a major victory for the administration’s “Economic Reform Agenda.” President Tinubu characterized the resolution as a signal to the global community that Nigeria is committed to transparency and the rule of law. By clearing one of the most litigious legacy issues in the nation’s petroleum history, the government aims to restore investor confidence and stabilize the business environment for long-term capital commitments.
The impact on “Regulatory Clarity and Value Extraction” represents a vital dimension of the new deal. Olu Verheijen, Special Adviser to the President on Energy, noted that the settlement was anchored on the reforms of the Petroleum Industry Act (PIA). The revised terms are designed to offer investors predictability while ensuring the Federation captures a stronger share of the value from its deepwater assets. This balanced approach is intended to move the sector away from the era of protracted legal battles toward one of active exploration and production.
Furthermore, the President commended the collaborative efforts of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPC Limited in facilitating the deal. The presence of Eni’s top leadership including COO Guido Brusco and Sub-Saharan Head Mario Bello underscores the international importance of this reconciliation. For Eni, the settlement marks a return to focused operations in a key growth market, while for Nigeria, it unlocks a massive energy asset that has been dormant for over a decade.
The long-term outlook for the Nigerian oil sector suggests an acceleration of offshore activities as other majors observe the successful resolution of the OPL 245 dispute. As the administration continues to prioritize the removal of “legacy bottlenecks,” the energy industry is expected to see a surge in responsible investment. For the Nigerian economy, the addition of 150,000 barrels per day could be the catalyst needed to stabilize the foreign exchange market and fund critical infrastructure projects nationwide.
