The Federal Government has broken up the controversial OPL 245 oil block into four new assets to be operated by Eni and Shell, in a move that could finally unlock one of Nigeria’s largest untapped deepwater reserves after nearly three decades of legal and political disputes.
A source familiar with the development told Reuters on Monday that the restructuring effectively clears the path for the long-delayed development of OPL 245, a field widely regarded as one of Nigeria’s most prolific offshore assets.
The block has remained idle amid overlapping lawsuits and investigations spanning Nigeria, Italy, and other jurisdictions. According to the source, who spoke on condition of anonymity because they were not authorised to comment ahead of an official announcement, final agreements for the restructured assets are expected to be signed beginning Monday.
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The report read, “The Federal Government has broken up the OPL 245 oil block into four new assets to be operated by Eni and Shell, a source told Reuters, potentially settling the future of the field at the centre of one of the oil industry’s biggest historic corruption trials. The agreement clears the way for the development of OPL 245, one of Nigeria’s biggest deepwater reserves that has remained untapped for almost three decades amid overlapping lawsuits in multiple countries.”
The latest move signals a major shift in the Federal Government’s long-standing efforts to resolve the dispute surrounding OPL 245 and bring the asset into production.
Successive administrations had expressed interest in finding a legal and commercial resolution that would enable Nigeria to monetise the deepwater field and boost crude output.
OPL 245 was originally awarded in 1998 to Malabu Oil and Gas, a company linked to former Nigerian oil minister, Dan Etete. The licence was later acquired by Shell and Eni in a deal valued at about $1.3bn.
