…Project to Add 150,000 BPD To Nigeria’s Output
By Yinka Giwa
President Bola Ahmed Tinubu has announced the resolution of the long-running dispute over Oil Prospecting Licence (OPL) 245, a development expected to unlock one of Nigeria’s most commercially promising deepwater oil assets even as the controversy surrounding the block continues to generate debate following revelations contained in former Attorney-General Mohammed Bello Adoke’s book on the saga.
The President made the announcement on Thursday at the State House in Abuja after the successful conclusion of a settlement agreement between the Federal Government of Nigeria, ENI, and Nigerian Agip Exploration Limited (NAEL).
The agreement brings to a close more than 15 years of legal disputes surrounding the oil block widely regarded as one of Nigeria’s most valuable offshore assets and clears the path for the Final Investment Decision on the Zabazaba–Etan deepwater development.
The project is expected to add approximately 150,000 barrels per day to Nigeria’s crude oil production capacity once fully developed.
Present at the meeting with the President were ENI’s Chief Executive Officer, Claudio Descalzi; Chief Operating Officer, Guido Brusco; Head of Sub-Saharan Region, Mario Bello; Managing Director of Nigerian Agip Exploration, Fabrizio Bolondi; and the Special Adviser to the President on Energy, Olu Arowolo-Verheijen.
President Tinubu described the settlement as a strategic milestone in Nigeria’s economic reform agenda and a signal to global investors that the country is committed to resolving legacy disputes that have long discouraged investment in the oil and gas sector.
“This resolution sends a clear signal to global investors that Nigeria is prepared to address legacy issues transparently, uphold the rule of law, and create a stable environment for long-term capital,” the President said.
According to the Presidency, the agreement represents a significant improvement on the 2011 resolution arrangement and aligns with the policy framework established under the Petroleum Industry Act (PIA).
Energy adviser to the President, Olu Arowolo-Verheijen, said the revised terms provide the clarity and predictability required for major deepwater investments while ensuring stronger value and safeguards for the Nigerian federation.
“With the dispute now settled, Nigeria has removed one of the most prominent legacy risks in its upstream sector and reinforced its commitment to predictable regulation, transparent governance, and commercially viable investment frameworks,” he said.
The resolution comes against the backdrop of renewed public interest in the OPL 245 controversy following the publication last year of OPL 245: The Inside Story of the $1.3 Billion Oil Block, a memoir by former Attorney-General and Minister of Justice under the Goodluck Jonathan administration, Mohammed Bello Adoke, SAN.
In the book, Adoke offers a detailed account of the Malabu oil block transaction and the events that led to his prosecution in Nigeria and Europe.
He recounts what he describes as a 12-year legal ordeal, including multiple cases in courts across major European jurisdictions, 35 days of detention in Dubai, and 55 days in the custody of the Economic and Financial Crimes Commission (EFCC) before Nigerian courts eventually discharged and acquitted him of all charges.
Adoke argues that the OPL 245 controversy became heavily politicised and that he was unjustly targeted by powerful interests determined to secure his conviction.
One of his most pointed criticisms is directed at former President Olusegun Obasanjo, whom he accuses of initiating the complications that eventually engulfed the oil block.
According to Adoke, Obasanjo’s decision to revoke the block without clearly stating the reasons triggered a wave of litigation involving the Nigerian National Petroleum Corporation (NNPC), Malabu Oil and Gas and international oil companies, thereby stalling development of the asset for years.
Adoke describes the former president as “clever by half” and says he owes Nigerians an apology for what he characterises as misleading claims about the origins of the dispute.
The former attorney-general also accuses former President Muhammadu Buhari of harbouring a deep resentment toward him and pursuing what he describes as a politically motivated prosecution.
Adoke alleges that Buhari believed he had been unfair to members of the Abacha family, particularly Mohammed Abacha, who claimed an interest in the Malabu oil block.
According to Adoke, this perception led to what he calls a campaign by the Buhari administration to portray him as the central figure in a corruption scandal he insists never existed.
The book also contains criticisms of former Vice President Prof. Yemi Osinbajo, whom Adoke describes as a conflicted public figure eager to project an image of transparency and accountability.
Adoke claims that Osinbajo supported arrangements that could have allowed a lawyer associated with him to receive a commission ranging between 10 and 35 percent from aspects of the transaction.
He further devotes a chapter to his successor as Attorney-General, Abubakar Malami, whom he describes as a vindictive political adversary that aggressively pursued his prosecution.
Adoke insists that the allegations against him eventually collapsed in court and that he was vindicated after years of legal battles.
Industry analysts say the Tinubu administration’s settlement of the OPL 245 dispute could mark a turning point for Nigeria’s oil industry by removing one of the most persistent legal clouds over the country’s upstream sector.
President Tinubu commended the institutions and stakeholders involved in achieving the settlement, including the Office of the Attorney-General of the Federation, the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), NNPC Limited and the leadership of ENI.
The Presidency said the resolution underscores the administration’s determination to unlock Nigeria’s strategic energy assets, attract responsible investment and ensure that the nation’s natural resources translate into growth, jobs and long-term prosperity for Nigerians.