Nigeria Restructures OPL 245 Oilfield into Four Blocks in Strategic Deal with Eni and Shell
Abuja, Nigeria — The federal government has moved to resolve one of the longest‑standing impasses in the country’s upstream petroleum sector by splitting the contested Oil Prospecting Licence (OPL) 245 into four separate oil blocks under a new agreement with international energy majors Eni and Shell.
According to officials familiar with the matter, the decision — reached after protracted negotiations — paves the way for development activity to finally begin on one of Nigeria’s largest deepwater hydrocarbon assets, which has been dormant for nearly three decades amid legal disputes and international scrutiny.
Ending a Prolonged Stalemate
OPL 245 has been at the centre of complex litigation and diplomatic tensions dating back to the late 1990s when it was first awarded to Malabu Oil and Gas, a company linked to a former petroleum minister. The licence subsequently changed hands in a controversial transaction involving Shell and Eni, drawing allegations of misappropriation and corruption in multiple jurisdictions.
Over the years, overlapping claims, court battles and arbitration stalled efforts to bring the block into production. The new arrangement — involving its subdivision into four operational units — is expected to break that deadlock and attract fresh investment for exploration and production. Final contracts with the developers are anticipated to be signed imminently, sources said.
Industry and Policy Implications
Analysts say the restructuring reflects Nigeria’s broader efforts to unlock untapped energy resources and shore up oil output, which remains critical to government revenues and foreign exchange earnings. The deepwater asset is widely regarded as having significant hydrocarbon potential, and its activation could boost upstream activity and jobs in related sectors.
The absence of official statements from Eni, Shell and the Nigerian National Petroleum Company (NNPC) suggests discussions are ongoing, with parties likely to release further details once contractual milestones are completed.
Historical Context
OPL 245’s checkered history includes a $1.3 billion acquisition by Shell and Eni in the 2010s, a deal that triggered legal proceedings overseas amid allegations that most of the funds were diverted to intermediaries and public officials. While executives associated with the transaction were cleared of wrongdoing in foreign courts, the asset itself has remained largely undeveloped.
The recent restructuring marks a crucial step toward bringing decades‑old litigation to a close and harnessing the commercial potential of a field long viewed as among Nigeria’s prized offshore resources.