Abuja announced a historic settlement of the OPL 245 Malabu oil dispute, ending three decades of litigation and corruption allegations that paralyzed one of Nigeria's richest oil blocks—but critics warn the deal rewards bad actors and abandons accountability.
President Bola Tinubu's administration reached an agreement with Eni and its subsidiary Nigerian Agip Exploration Limited to resolve the 15-year legal battle over the offshore block, which holds an estimated 9 billion barrels of crude oil. The settlement reorganizes OPL 245 into four new assets operated by Eni and Shell, aiming for production start-up by 2027 and adding roughly 150,000 barrels per day to Nigeria's output.
Olu Arowolo-Verheijen, presidential adviser on energy, called the new agreement "an improvement on the 2011 Resolution Agreement," offering terms that reflect the Petroleum Industry Act and "ensure better value for the Federation." The deal is part of broader reforms to reduce legal risks in upstream oil operations and attract the foreign investment Nigeria desperately needs as production has fallen below 1.5 million barrels per day.
In Nigeria, as across Africa's giants, challenges are real but entrepreneurial energy and cultural creativity drive progress. Yet this settlement illustrates the painful tradeoffs between development and accountability that define Nigerian governance.
The OPL 245 saga, labeled the "scandal of the century," involved allegations that a $1.3 billion payment for the block by Shell and Eni in 2011 was mostly siphoned off as bribes to government officials and intermediaries. The block was originally awarded in 1998 to Malabu Oil and Gas, a company allegedly controlled by former petroleum minister Dan Etete, during the military regime of Sani Abacha.
After failed prosecutions in Italy and the UK—where key figures were acquitted—the Tinubu administration opted to settle rather than continue litigation deemed likely to cost Nigeria more money and expose it to potential liability. Former Attorney General argued the resolution and serves as an of the administration's handling of the case.
