Nigeria has divided the long‑disputed OPL 245 deep‑water block into four separate assets that will be operated jointly by Eni and Shell. The split creates a new operational structure that allows the two partners to manage distinct portions of the block while maintaining a shared interest in overall production.
OPL 245, located off the coast of Nigeria’s Niger Delta, is estimated to contain up to 9 billion barrels of oil. The block was originally awarded in 1998 to Malabu Oil and Gas Ltd., a company linked to former Petroleum Minister Dan Etete. In 2011 Eni and Shell acquired the block for $1.3 billion, a transaction that later became the focus of corruption allegations and a high‑profile Italian criminal trial. The companies were acquitted in 2021, and subsequent civil claims and arbitration proceedings have been largely dismissed, clearing the way for a definitive operational agreement.
The joint operation aligns with Eni’s strategy to optimize upstream activities and deepen its presence in West Africa, while for Shell it represents a focus on high‑value deep‑water projects amid a broader divestment of onshore assets. By splitting the block into four assets, the partners can allocate resources more efficiently, accelerate development timelines, and reduce regulatory friction. The move is expected to unlock production that could contribute significantly to Nigeria’s goal of raising oil output to 3 million barrels per day and expanding the country’s proven reserves toward a 40 billion‑barrel target.
For Nigeria, the resolution of the decades‑long dispute over OPL 245 is a key step toward boosting national revenue. The block’s potential output could add several hundred thousand barrels per day to the national tally, helping to offset declining production from older onshore fields and supporting the government’s fiscal objectives. The agreement also signals a willingness of the Nigerian government to move past legal stalemates and engage with international partners on large‑scale projects.
Both Eni and Shell declined to comment on the agreement, but the Nigerian government has expressed a long‑standing desire to bring OPL 245 into production. The joint operation marks the culmination of years of legal wrangling and represents a significant milestone for the oil sector in Nigeria and for the two companies’ upstream portfolios.
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