Nigeria’s government has divided the long-disputed OPL 245 offshore oil block into four new assets to be operated by Eni SpA and Royal Dutch Shell PLC, potentially unlocking one of the country’s largest untapped deepwater reserves, according to a source familiar with the matter.
“Dividing the block makes it more manageable for operators and aligns with the government’s objective of bringing the asset into production,” the source said, speaking on condition of anonymity.
The 1.3-billion-dollar block has been entangled in legal and political controversies since it was awarded in 1998 to Malabu Oil and Gas, a company linked to former oil minister Dan Etete. Italian prosecutors alleged that much of the purchase price was diverted to politicians and intermediaries, leading to trials in Italy involving Eni, Shell, and senior executives including Eni CEO Claudio Descalzi. All defendants were acquitted in 2021.
Despite the court ruling, overlapping lawsuits and regulatory uncertainty left OPL 245 undeveloped for nearly three decades. Analysts have long identified the block as a high-potential deepwater asset, capable of producing hundreds of thousands of barrels per day once operational.
Recent developments have reshaped the ownership landscape. In May 2025, Nigeria’s Court of Appeal dismissed Malabu’s claims to the block in favor of Nigerian Agip Oil Company (NAOC). In August 2024, Oando PLC acquired NAOC from Eni for $783 million, a transaction the company described as a milestone in its long-term growth strategy.
Industry observers said the new division is likely to accelerate exploration and attract investment. “The government is signaling that it wants this asset into production, which could draw significant foreign investment and boost Nigeria’s offshore output,” said an Abuja-based oil analyst.
The restructuring also reflects a broader push by Nigerian authorities to resolve long-standing disputes that have discouraged investors and stalled development. By splitting OPL 245 into four units, Eni and Shell can manage operational and financial risks more effectively.
Nigeria, Africa’s largest oil producer, faces pressure to increase output and maintain foreign investment amid volatile global energy markets. Analysts estimate that bringing OPL 245 online could contribute billions of dollars to the economy, strengthen the country’s position in deepwater oil, and create jobs in the oil and service sectors.
Eni and Shell did not immediately respond to requests for comment. Nigerian authorities emphasized that oversight and regulatory compliance will remain central to the development of the assets.