By Achile Danjuma
Nigeria’s oil sector is witnessing a dramatic shift as the federal government has resolved the long-running dispute over Oil Prospecting Licence (OPL) 245, a development expected to unlock a major offshore project capable of producing about 150,000 barrels of crude oil per day, even as the Senate launches a sweeping probe into alleged financial irregularities in the Nigerian National Petroleum Company Limited (NNPCL).
The breakthrough on the controversial oil block followed a high-level meeting presided over by President Bola Ahmed Tinubu at the Presidential Villa in Abuja, where government officials and executives of Italian energy giant ENI and its subsidiary, Nigerian Agip Exploration Limited (NAEL), agreed to formally end the 15-year dispute that had stalled one of Nigeria’s most valuable deepwater assets.
The settlement clears the way for a Final Investment Decision on the Zabazaba–Etan project, widely regarded as one of Nigeria’s most commercially promising offshore developments.
For more than a decade, the OPL 245 controversy dragged through courts and international arbitration, freezing billions of dollars in potential investments and delaying exploration activities that could have significantly boosted Nigeria’s crude output.
Industry observers say the prolonged dispute cost the country huge revenue losses and discouraged international oil companies at a time when Nigeria was struggling to meet production targets and attract fresh capital into its upstream sector.
The legal uncertainty surrounding the oil block also raised serious concerns among global investors about regulatory stability and contract security in Africa’s largest oil-producing nation.
But the Tinubu administration now says the settlement represents a turning point for Nigeria’s energy sector.
According to a statement by the President’s Special Adviser on Information and Strategy, Bayo Onanuga, the agreement restores clarity and stability to one of the country’s most strategic deepwater resources while paving the way for long-delayed investments.
President Tinubu described the resolution as a strategic milestone in his administration’s economic reform agenda, stressing that the government remains committed to resolving legacy disputes that undermine investor confidence.
“This resolution sends a clear signal to global investors that Nigeria is prepared to address legacy issues transparently, uphold the rule of law and create a stable environment for long-term capital,” the President said.
Those present at the meeting included ENI Chief Executive Officer Claudio Descalzi, Chief Operating Officer Guido Brusco, Head of Sub-Saharan Region Mario Bello, and Managing Director of Nigerian Agip Exploration Limited Fabrizio Bolondi.
Also in attendance were senior government officials including the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.
Arowolo-Verheijen said the settlement represents a significant improvement on the earlier 2011 resolution framework and aligns with the fiscal and governance reforms introduced under the Petroleum Industry Act (PIA).
According to her, the revised agreement provides investors with the predictability needed to proceed with major deepwater investments while ensuring stronger value and safeguards for the Nigerian federation.
Officials say once development begins at the Zabazaba–Etan field, the project could significantly strengthen Nigeria’s crude production capacity, generate thousands of jobs and inject new life into the country’s offshore oil industry.
The resolution of the OPL 245 dispute forms part of a broader push by the federal government to reposition Nigeria as a competitive destination for global energy investment.
However, even as the government celebrates the breakthrough, lawmakers have opened another major front in Nigeria’s oil sector governance.
The Senate has summoned the immediate past Group chief executive officer of NNPCL, Mele Kyari, alongside former Chief Financial Officer Umar Ajia Isa and former Group General Manager of the National Petroleum Investment Management Services (NAPIMS), Dr. Bala Wunti, over alleged financial discrepancies amounting to N210 trillion between 2017 and 2023.
The Senate Committee handling the probe also warned that it may issue arrest warrants if the former management team fails to appear before the panel.
Chairman of the committee, Senator Aliyu Wadada, said the decision followed issues raised in audit reports indicating that a combined sum of N103 trillion and N107 trillion could not be properly accounted for in the company’s records during the period under review.
According to Wadada, the committee has directed the national oil company to explain the discrepancies and refund the funds if necessary.