KEY POINTS
- The Federal Government has split OPL 245 into four new assets to be operated by Eni and Shell.
- The move follows nearly 30 years of legal disputes and corruption investigations across multiple countries.
- If development begins, the block could significantly increase Nigeria’s crude oil production and revenue.
After nearly 30 years of court battles, political drama and stalled plans, the Federal Government has taken a decisive step on one of Nigeria’s most controversial oil assets OPL 245.
The government has split the oil block into four separate assets in what officials say is a move designed to finally unlock production from one of Nigeria’s biggest deepwater reserves.
The oil block, known as OPL 245, has long been regarded as one of Nigeria’s richest untapped offshore fields. Yet, despite its enormous potential, it has remained idle for decades due to overlapping lawsuits and corruption investigations across several countries.
Now, the Federal Government has restructured the asset into four different blocks to be operated by oil giants Eni and Shell.
Sources familiar with the development say the restructuring clears the way for long-delayed development activities to finally begin. Final agreements are expected to be signed soon, marking what could be the beginning of a new chapter for the field.
How the Controversy Began
The OPL 245 saga dates back to 1998 when the oil licence was first awarded to Malabu Oil and Gas, a company linked to former Nigerian oil minister Dan Etete.
Years later, the block was acquired by Shell and Eni in a deal reportedly worth about $1.3 billion.
However, the transaction quickly became one of the oil industry’s most talked-about corruption cases. Italian prosecutors alleged that a significant portion of the money paid for the block was diverted to politicians and middlemen.
The case led to a lengthy trial in Milan involving both companies and top executives, including Eni’s Chief Executive Officer, Claudio Descalzi.
In 2021, an Italian court cleared Eni, Shell, and the executives of all wrongdoing, effectively bringing the European criminal trial to an end. The companies had consistently denied any misconduct throughout the proceedings.
For years, successive Nigerian administrations tried to find a legal and commercial solution that would allow the country to benefit from the block’s enormous reserves.
By breaking OPL 245 into four separate assets, the Federal Government appears to be simplifying the ownership and operational structure. Analysts say this could reduce lingering legal uncertainty, make the project easier to manage, and attract fresh investment.
If fully developed, the block could significantly boost Nigeria’s crude oil production at a time when the government is pushing to increase output and raise revenue.
