The Federal Government has divided the controversial OPL 245 oil block into four separate assets to be operated by Eni and Shell, a move that could clear the path for development of the long-disputed field.
A source familiar with the development said the restructuring may finally determine the future of the asset, which has been at the centre of one of the oil industry’s biggest historic corruption trials, according to Reuters.
The decision reflects a fresh effort by authorities to unlock output from one of Nigeria’s most prized deepwater reserves after years of protracted legal and regulatory disputes.
The agreement is set to pave the way for the development of OPL 245, which has remained undeveloped for almost three decades amid overlapping lawsuits in several jurisdictions.
Splitting the block is widely viewed as a pragmatic solution to the protracted dispute that has delayed investment and stalled production.
According to the source, the restructuring is consistent with the government’s long-standing goal of moving the asset into active production.
The Federal Government has divided OPL 245 into four distinct assets to be operated by Eni and Shell.
The move indicates that authorities are focusing on unlocking production and achieving a commercial resolution rather than extending lengthy legal battles.
OPL 245 has long been mired in legal and political controversy, attracting international attention over allegations of corruption surrounding its acquisition.
The block was originally awarded in 1998 to Malabu Oil and Gas, a company connected to former Nigerian oil minister Dan Etete, before being sold to Shell and Eni.
Italian prosecutors have claimed that a large portion of the $1.3 billion paid for the licence was siphoned to politicians and intermediaries.
Eni, Shell, and several executives, including Eni CEO Claudio Descalzi, faced trial in Italy. All defendants were acquitted in 2021 after denying any wrongdoing.
The block has remained undeveloped due to multiple lawsuits across different jurisdictions.
These prolonged disputes have considerably delayed exploration and production, despite the asset’s significant deepwater potential.
