Tinubu ends 15yr OPL 245 dispute, set to trigger FID on Zabazaba–Etan deepwater project

President Bola Tinubu has successfully mediated a historic settlement agreement between the Federal Government of Nigeria, Eni, and Nigerian Agip Exploration Limited, effectively terminating a legal and administrative dispute that had paralyzed one of the nation’s most lucrative energy assets for over fifteen years.

By overseeing the final resolution of the conflict surrounding Oil Prospecting Licence (OPL) 245, the President has dismantled a primary barrier to Nigeria's upstream growth, providing the legal clarity and fiscal stability necessary to move the asset into immediate development.

This strategic intervention is designed to fast-track the Final Investment Decision (FID) for the Zabazaba–Etan deepwater project, which had been stalled by the protracted litigation, leaving billions of dollars in potential capital stranded.

The conclusion of this settlement serves as a cornerstone for the administration’s aggressive mandate to push national oil production toward the 2 million barrels per day (mbpd) threshold.

With the pathway to FID now cleared, the Zabazaba–Etan development is projected to contribute an additional 150,000 barrels per day to Nigeria’s daily output, significantly narrowing the gap in the country’s production quotas and strengthening the long-term energy outlook.

Commenting, the Special Adviser to the President on Energy, Olu Verheijen, noted that the revised terms reflect the modernized policy framework of the Petroleum Industry Act (PIA), ensuring that the project is not only commercially viable for global investors but also optimized for value accretion to the Federation.

By resolving this prominent legacy risk, President Tinubu has signaled a departure from the era of regulatory uncertainty that previously deterred major international oil companies from committing to large-scale offshore ventures.

The administration’s focus on transparent governance and the rule of law is repositioning Nigeria as a competitive destination for long-term capital, directly addressing the production declines of recent years.

The successful resolution is expected to trigger a domino effect of renewed investor confidence across the deepwater sector, facilitating the massive infrastructure investments required to sustain the 2mbpd ambition and ensuring that Nigeria's strategic energy resources are finally translated into tangible economic prosperity and job creation.