Settlement between the federal government, Eni, and Nigerian Agip Exploration could unlock a major offshore development expected to boost Nigeria’s crude output by 150,000 barrels per day…..
The Group Chief Executive Officer of Nigerian National Petroleum Company Limited, Bayo Ojulari, has said the long-awaited resolution of the dispute surrounding Oil Prospecting Licence 245 will open the door for the development of the strategically important Zabazaba–Etan deepwater project.
Ojulari noted that advancing the project could significantly strengthen Nigeria’s oil production capacity, potentially adding about 150,000 barrels per day to the country’s output once development is fully underway.
The Presidency announced on March 5 that a settlement agreement had been reached between the Federal Government of Nigeria, Eni, and Nigerian Agip Exploration Limited, bringing an end to a dispute that has lingered for more than 15 years.
According to the presidency, the agreement creates a clear pathway for the development of one of Nigeria’s most commercially promising deepwater oil assets, long stalled by legal battles and ownership controversies.
Commenting on the breakthrough, Ojulari described the settlement as a landmark moment for Nigeria’s energy industry and for NNPC Limited, particularly as the country seeks to unlock value from its vast offshore resources.
He said the national oil company was honoured to have been entrusted by Bola Ahmed Tinubu with the responsibility of supporting the resolution of the long-running dispute involving the Federal Government, Eni, and NAEL.
Ojulari explained that the agreement effectively clears the obstacles that have delayed the development of the Zabazaba–Etan deepwater field, a project widely regarded as one of the most strategic oil developments in Nigeria’s offshore portfolio.
He added that moving the project forward could significantly strengthen Nigeria’s energy security while also improving the country’s economic resilience through increased oil production and revenue generation.
President Tinubu also described the resolution as an important signal to the international investment community that Nigeria is ready to confront long-standing issues within its energy sector in a transparent and decisive manner.
Ojulari further emphasized that the successful conclusion of the negotiations demonstrates the power of sustained collaboration, determination, and a shared commitment to ensuring Nigeria’s natural resources deliver tangible benefits for the nation.
The agreement was finalized during a meeting at the President’s office attended by senior executives of Eni, including Chief Executive Officer Claudio Descalzi and Chief Operating Officer Guido Brusco, alongside other top representatives of the company.
Also present were the Head of Eni’s Sub-Saharan Africa region, Mario Bello, Managing Director of Nigerian Agip Exploration Limited, Fabrizio Bolondi, and the Special Adviser to the President on Energy, Olu Verheijen.
A statement issued by the President’s media aide, Bayo Onanuga, confirmed that the agreement was signed in Abuja, formally closing a dispute that has spanned more than a decade and a half.
With the legal uncertainties now resolved, the government believes the settlement restores stability and clarity to a deepwater oil block widely considered one of Nigeria’s most valuable untapped offshore resources.
Industry observers say the development could mark a major turning point for Nigeria’s offshore oil sector, potentially unlocking billions of dollars in investment and accelerating efforts to boost the nation’s crude oil production in the coming years.
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