OPL 245 Settlement Opens Door For Large-Scale Oil Investment, Says AGF

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, is optimistic that the federal government’s recent resolution of the longstanding dispute over Oil Prospecting Licence (OPL) 245 will usher in huge investment into Nigeria’s oil and gas sector.

Fagbemi spoke in Abuja after the signing of a legal agreement between the federal government and Eni, along with its subsidiary, Nigerian Agip Exploration Limited (NAEL).

“The agreement marks a turning point for Nigeria’s oil and gas sector after more than two decades of legal battles and international arbitration,” the Attorney-General said.

The settlement, which will culminate in a consent arbitral award, restructures OPL 245 into four new assets namely Petroleum Mining Leases (PML) 102 and 103, and Petroleum Prospecting Leases (PPL) 2011 and 2012.

They will be operated by Nigerian Agip Exploration Limited alongside NNPC Limited and Shell Nigeria Exploration and Production Company Limited (SNEPCO).

The block, located in deep waters approximately 150 kilometres from the Niger Delta, is estimated to hold as many as nine billion barrels of oil.

The OPL 245 dispute dates back to 1998, when the Nigerian government awarded the licence to Malabu Oil & Gas. After military rule, the subsequent Olusegun Obasanjo administration revoked the licence in July 2001.

Years of litigation followed before Shell and Eni acquired the block in 2011 for approximately $1.3bn in a deal that later became the subject of corruption allegations across multiple continents.

Fagbemi described the resolution as a milestone in repositioning Nigeria’s economic landscape and recalibrate the nation’s economy.

He attributed it to the commitment of President Bola Tinubu in ensuring that all disputes over the oil block be resolved amicably in the best interests of Nigerians.

“The clear vision and deep commitment of President Tinubu provided the political will required to bring closure to this protracted dispute. The agreement demonstrates Nigeria’s commitment to transparency, accountability, and the rule of law,” he said.

Fagbemi said the settlement, which will culminate in a consent arbitral award, did not only resolve the complex international dispute but will also restore Nigeria’s credibility as a responsible partner in global business.

He said the removal of legal and fiscal uncertainties that had long hindered the development of the block would now attract investment and generate employment.

“This development will pave the way for large-scale investments, stimulate job creation, and reinforce Nigeria’s position as a leading energy producer in Africa,” he said.

He further noted that projected revenues from the asset could now be incorporated into Nigeria’s medium-term fiscal framework, with positive implications for budget stability, long-term economic planning, and debt sustainability.

“This settlement sends a clear signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” Fagbemi stated.

He commended key institutions that contributed to the outcome, including the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, NNPC Limited, the Economic and Financial Crimes Commission, and international partners Eni and Shell.

“With this agreement, Nigeria can now move forward with confidence, ensuring that the development of OPL 245 becomes a source of prosperity for the nation and future generations,” he said.