Nigeria Divides OPL 245 Oilfield into Four Blocks in Agreement with Eni, Shell

• Final contracts for the four new blocks are expected to be signed starting Monday, clearing the way for development of the long-dormant field
• The original licence was awarded in 1998 to Malabu (linked to former oil minister Dan Etete) and later sold to Shell and Eni for $1.3 billion
• Nigerian government has signaled for years its desire to bring the block into production as one of the country's biggest deepwater reserves

Nigeria Restructures OPL 245 Oilfield in Deal with Eni and Shell

Nigeria has divided the controversial OPL 245 oil block into four new assets to be operated by Eni and Shell, according to a source familiar with the matter. Final contracts are expected to be signed starting Monday, March 2, potentially resolving the future of one of Nigeria's largest untapped deepwater reserves.

Key Background:

OPL 245 was originally awarded in 1998 to Malabu, a company linked to former Nigerian oil minister Dan Etete. Shell and Eni later purchased the license for $1.3 billion, triggering one of the oil industry's biggest bribery scandals. Italian prosecutors alleged most of the purchase price was diverted to politicians and middlemen.

Both energy giants and several executives, including Eni CEO Claudio Descalzi, faced trial in Italy but were acquitted in 2021 after denying all wrongdoing.

Market Implications:

The restructuring agreement clears the path for development of the field, which has remained dormant for nearly three decades amid overlapping international lawsuits. Nigeria's government has signaled strong interest in bringing the block into production, representing a significant opportunity to unlock valuable deepwater oil reserves.

The deal marks a major step toward resolving legal uncertainties that have prevented exploitation of these substantial hydrocarbon resources. Both Eni and Shell, along with Nigeria's state-owned NNPC, declined to comment on the arrangement.

Bottom Line:

This agreement could finally enable production from one of Nigeria's most valuable yet troubled oil assets, providing relief for the Nigerian government seeking to monetize stranded resources and offering clarity for the European oil majors involved.