Restructuring of Nigeria’s controversial deepwater asset could unlock billions in investment and finally bring one of the country’s richest offshore reserves into production……
The Federal Government has moved to dismantle the long-contested OPL 245 oil block, carving it into four separate assets to be operated by Eni and Shell, in what insiders describe as a decisive step toward unlocking one of Nigeria’s most valuable untapped offshore reserves.
A source familiar with the matter confirmed that the restructuring clears a path for the long-delayed development of the deepwater field, which has remained dormant for nearly three decades due to protracted legal and political disputes across multiple jurisdictions.
According to the source, who requested anonymity ahead of an official announcement, final agreements for the newly structured assets are expected to be signed beginning Monday.
The reorganisation could effectively close a turbulent chapter in Nigeria’s oil sector, one defined by international investigations, courtroom battles, and regulatory uncertainty.
A Field Shadowed by Controversy
OPL 245 has long been regarded as one of Nigeria’s most promising offshore blocks. Originally awarded in 1998 to Malabu Oil and Gas, a company linked to former oil minister Dan Etete the licence was later acquired by Eni and Shell in a deal valued at approximately $1.3 billion.
However, the transaction became the subject of one of the oil industry’s most high-profile corruption probes.
Italian prosecutors alleged that a substantial portion of the acquisition funds was diverted to politicians and intermediaries, triggering a lengthy trial in Milan involving both oil majors and several executives, including Eni’s Chief Executive Officer, Claudio Descalzi.
In 2021, an Italian court acquitted Eni, Shell, and all executives of wrongdoing, effectively ending the European criminal proceedings. Both companies had consistently denied the allegations throughout the trial.
Despite the acquittals, the cloud of legal uncertainty continued to stall development of the asset.
A Strategic Reset
The decision to split OPL 245 into four operational assets marks a significant strategic pivot by the Federal Government, which has repeatedly signaled its desire to resolve the impasse and bring the field into production.
Successive administrations have sought a workable legal and commercial framework that would allow Nigeria to monetize the deepwater reserve and strengthen crude output.
By restructuring the block, authorities appear to be simplifying operational control and reducing legal complexity steps that industry analysts say could accelerate final investment decisions.
Neither Eni nor Shell has publicly commented on the latest development. Nigeria’s national oil company, Nigerian National Petroleum Company Limited, had also not issued an official statement at the time this report was filed.
What It Means for Nigeria
If the restructuring proceeds as planned, the long-idle field could become a major contributor to Nigeria’s oil production capacity.
At a time when the government is pushing to ramp up output, attract foreign capital, and stabilise revenues, unlocking OPL 245 could inject fresh momentum into the country’s deepwater segment.
Beyond production gains, the move may also signal to international investors that one of Nigeria’s most complex oil disputes is finally nearing resolution.
The coming days are expected to provide greater clarity as formal agreements are signed and detailed terms of the new asset structure are disclosed, potentially closing a chapter that has defined Nigeria’s oil industry for nearly 30 years.
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