AWC Oil & Gas Desk
March 5, 2026 | Abuja
Nigeria – President Bola Ahmed Tinubu has announced the historic settlement of the long-running dispute over Oil Prospecting Licence OPL 245, paving the way for the long-awaited development of the Zabazaba–Etan Field in Nigeria’s offshore Niger Delta.
The breakthrough agreement involves the Nigerian government and international energy companies Eni and Nigerian Agip Exploration Limited. According to the Presidency, the settlement resolves years of legal and commercial disputes surrounding the lucrative offshore oil block and clears the path for renewed investment in the sector.
Unlocking a Strategic Oil Asset
Speaking on the development, President Tinubu described the resolution as a “major milestone for Nigeria’s energy sector and economic recovery.”
The Zabazaba–Etan deepwater project is projected to produce approximately 150,000 barrels of crude oil per day at peak output, making it one of the most significant upcoming offshore developments in West Africa.
Government officials say the project will generate billions of dollars in revenue over its lifespan, while also creating jobs, boosting local content participation, and strengthening Nigeria’s foreign exchange earnings.
“This agreement demonstrates our administration’s commitment to resolving legacy disputes, restoring investor confidence, and unlocking Nigeria’s vast energy resources for national development,” the President said.
Ending Years of Legal Disputes
The OPL 245 block has been at the center of one of the most contentious oil disputes in Nigeria’s history, involving multiple legal battles and international arbitration over ownership rights and contractual obligations.
For years, uncertainty surrounding the block stalled development of the Zabazaba–Etan discovery despite its significant reserves. Industry analysts estimate the field contains several hundred million barrels of recoverable oil, making it one of the most commercially attractive deepwater prospects in Nigeria.
The new settlement is expected to bring legal clarity and operational stability, allowing the partners to move forward with full field development.
Economic Impact
Energy experts say the agreement could deliver several strategic benefits for Nigeria:
- Increased oil production capacity, supporting national output targets.
- Higher government revenues through taxes, royalties, and profit sharing.
- Improved investor confidence in Nigeria’s oil and gas sector.
- New infrastructure and employment opportunities across the petroleum value chain.
The project is also expected to contribute significantly to Nigeria’s long-term production outlook as mature onshore fields gradually decline.
Renewed Investor Confidence
The settlement signals the Tinubu administration’s broader push to resolve long-standing investment disputes and reposition Nigeria as a stable destination for global energy investment.
Officials say discussions are already underway with project partners to finalize development timelines and mobilize capital for the deepwater field.
Industry observers note that unlocking the Zabazaba–Etan project could mark one of the most important energy sector breakthroughs in recent years, potentially reshaping Nigeria’s offshore production landscape.
Looking Ahead
With the dispute now resolved, stakeholders expect engineering studies, financing arrangements, and project execution plans to accelerate in the coming months.
For Nigeria, the successful resolution of the OPL 245 issue represents not only the end of a complicated legal saga but also the beginning of a new phase of offshore energy development that could deliver substantial economic returns for decades.
