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The Digest:

Nigeria has reached an agreement to split the long-disputed Oil Prospecting License (OPL) 245 into four new assets, which will be operated by Eni and Shell . According to a source familiar with the matter, the deal clears the way for development of one of Nigeria's largest deepwater reserves, which has remained untapped for nearly three decades amid overlapping legal disputes across multiple countries . Final contracts are expected to be signed starting Monday, March 2 . The agreement could resolve the future of the field at the centre of one of the oil industry's biggest historical corruption trials . OPL 245 was initially awarded in 1998 to Malabu Oil and Gas Ltd, linked to former petroleum minister Dan Etete and Mohammed Abacha . Italian prosecutors had alleged that most of the $1.3 billion purchase price was siphoned to politicians and middlemen, but Eni, Shell, and their executives were acquitted in a Milan court in 2021 .

Key Points

  • The agreement unlocks nearly 30 years of deadlock, potentially bringing significant deepwater reserves into production.
  • It provides a commercial resolution to one of Nigeria's most protracted and controversial oil sector disputes.
  • The development could generate substantial revenue for Nigeria through production royalties and taxes.
  • The deal allows Eni and Shell to finally develop an asset that has been mired in litigation since acquisition.
  • The restructuring suggests authorities are prioritizing commercial progress over prolonged legal battles.
The division of OPL 245 into four new assets marks a decisive step toward ending decades of controversy and unlocking the value of one of Nigeria's most significant deepwater resources.

Sources: Reuters, TheCable, Nairametrics