Eni Revives Nigeria's Giant OPL 245: Deepwater Expansion Accelerates After Landmark License Conversion
The long-running saga surrounding Nigeria's Oil Prospecting Licence 245 (OPL 245) one of the country's most contentious and potentially valuable deepwater assets—has taken a major positive turn.
In early March 2026, the Federal Government of Nigeria, under President Bola Ahmed Tinubu, reached a landmark settlement agreement with Italian energy giant Eni (through its subsidiary Nigerian Agip Exploration Limited, or NAE), resolving a dispute that spanned over 15 years. This breakthrough has enabled the conversion of the original OPL 245 into four new licenses and paved the way for Eni to accelerate its deepwater expansion plans in Nigeria.
Background: The Turbulent History of OPL 245
OPL 245, located in the deep offshore Niger Delta approximately 150 km from the coast in water depths exceeding 1,000 meters, has long been viewed as one of Nigeria's premier untapped deepwater prizes. Estimates suggest the block holds massive hydrocarbon potential, with some figures citing up to 9 billion barrels of oil in place, though proven and probable reserves for key developments are more conservative.
The block's troubles began in the late 1990s when it was initially awarded to Malabu Oil & Gas, a company linked to former Nigerian Petroleum Minister Dan Etete. A 2011 deal saw Malabu relinquish rights, with Shell and Eni paying around $1.3 billion (including a signature bonus) to the Nigerian government for access. This transaction triggered allegations of corruption, leading to high-profile investigations, criminal trials in Italy and Nigeria (where Eni and Shell were acquitted), civil suits in the UK, and international arbitration at the International Centre for Settlement of Investment Disputes (ICSID).
For nearly three decades, legal uncertainties, overlapping claims, and reputational risks kept the block largely undeveloped despite its promise. The prolonged stalemate deprived Nigeria of significant revenue and production capacity while deterring broader foreign investment in its deepwater sector.
The 2026 Breakthrough: License Conversion and Settlement
In a mutually agreed resolution announced around March 5, 2026, the Federal Government and Eni settled all outstanding claims related to OPL 245. This included discontinuing the ongoing ICSID arbitration proceedings. As a direct result:
- The original OPL 245 was converted into four new licenses:
- Two Petroleum Mining Leases (PMLs): PML 102 and PML 103 (development-focused).
- Two Petroleum Prospecting Leases (PPLs) PPL 2011 and PPL 2012 (exploration-focused).
These licenses are operated by Nigerian Agip Exploration Limited (NAE/Eni), in partnership with the Nigerian National Petroleum Company Limited (NNPC) and Shell Nigeria Exploration and Production Company Limited (SNEPCO).
The settlement clears longstanding legal hurdles and restores confidence in the asset. President Tinubu met with Eni CEO Claudio Descalzi in Abuja to discuss the implications, emphasizing that the deal aligns with Nigeria's economic reform agenda by unlocking investment and boosting energy security.
Eni's Expanded Deepwater Plans: Focus on Zabazaba and Etan
With the path now clear, Eni is fast-tracking development of the flagship Zabazaba and Etan fields within PML 102 and PML 103. These discoveries form the core of the Etan-Zabazaba project, which is estimated to hold approximately 500 million barrels of recoverable oil reserves.
Key project details include:
- A Final Investment Decision (FID) is now on the horizon, potentially in the near term.
- Development will center on a 150,000 barrels of oil per day (bopd) floating production, storage, and offloading (FPSO) vessel.
- Peak gas production is projected at 200 million standard cubic feet per day (MMscf/d), with exports routed through the Nigeria LNG (NLNG) facility—supporting Nigeria's gas monetization goals.
- Eni plans to leverage its expertise in fast-track development to bring the fields online efficiently, minimizing timelines and maximizing value.
This project alone could add substantial volumes to Nigeria's oil output, helping reverse recent production declines and contributing to the country's ambition to stabilize and grow exports amid global energy market volatility.
Beyond Zabazaba-Etan, the additional exploration licenses (PPL 2011 and 2012) provide Eni with fresh acreage for potential new discoveries, further expanding its footprint in Nigeria's prolific deepwater province.
Broader Implications for Nigeria's Energy Sector
The OPL 245 resolution is a win for investor confidence in Nigeria. Long-delayed deepwater projects have historically been hampered by regulatory, legal, and fiscal uncertainties. By settling this high-profile case, the Tinubu administration signals a commitment to clarity, stability, and partnership with international oil companies (IOCs).
For Eni, the move strengthens its position as a key player in sub-Saharan Africa, where it already operates significant assets in Nigeria, Angola, Congo, and elsewhere. The company has emphasized sustainable development, local content, and gas utilization—aligning with global energy transition trends while delivering near-term hydrocarbons.
Nigeria stands to gain billions in future revenues, job creation, and technology transfer. The project also supports diversification efforts, as associated gas will feed into NLNG exports, enhancing foreign exchange earnings.
Looking Ahead
This development marks the end of one of the oil industry's most notorious disputes and the beginning of a new chapter for Nigeria's deepwater potential. As Eni pushes forward with Zabazaba-Etan and explores adjacent blocks, the focus shifts to execution: securing FID, mobilizing infrastructure, and delivering first oil.
For energy watchers in East Africa and beyond—including geothermal-focused audiences—the story underscores the enduring role of oil and gas in bridging energy needs, even as renewables scale up. In Nigeria's context, unlocking deepwater resources could provide the fiscal space to invest in cleaner alternatives down the line.
Eni's expansion in Nigeria's deepwater, catalyzed by the OPL 245 license conversion, is a reminder that geopolitical and legal resolutions can unlock massive value in mature yet challenged basins.
To enhance the post visually, here are some suggested images based on the topic (deepwater offshore Nigeria, FPSO concepts, Eni operations, and Nigerian energy meetings):
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