Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC Ltd), Mr Bayo Ojulari, has said the resolution of the dispute surrounding Oil Prospecting Lease (OPL) 245 has opened the door for the long-delayed development of the Zabazaba–Etan deepwater project.
In a statement issued on Friday, Mr Ojulari noted that moving forward with the project could significantly boost Nigeria’s crude output, with the field expected to contribute about 150,000 barrels per day (bpd) to the country’s production capacity once fully operational.
The presidency had earlier, on March 5, confirmed the successful conclusion of a settlement agreement involving the federal government, Eni, and Nigerian Agip Exploration Limited (NAEL). The agreement effectively brings to an end a protracted legal and commercial dispute over the OPL 245 oil block.
According to the presidency, the settlement clears a major hurdle that had stalled the development of one of Nigeria’s most valuable deepwater oil assets for years. With the dispute now resolved, the parties involved are expected to move ahead with plans to develop the Zabazaba–Etan field, widely regarded as a strategic resource within Nigeria’s offshore portfolio.
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Mr Ojulari described the development as a defining moment for Nigeria’s energy sector and for NNPC Ltd, noting that it reflected renewed momentum in efforts to unlock the country’s vast hydrocarbon resources.
He said the national oil company was honoured that President Bola Ahmed Tinubu entrusted it with the responsibility of supporting the resolution of the dispute involving the federal government and the international oil companies.
“We are honoured that President Bola Ahmed Tinubu entrusted NNPC Limited with the responsibility of supporting the resolution of the long-standing OPL 245 dispute involving the Federal Government of Nigeria, ENI, and Nigerian Agip Exploration Limited,” Ojulari said.
He explained that the resolution aligned with the administration’s broader strategy of accelerating investment in Nigeria’s oil and gas sector while ensuring responsible and sustainable resource development.
Ojulari added that the Zabazaba–Etan project represented one of the country’s most important deepwater opportunities, noting that bringing it into production could materially improve Nigeria’s oil output at a time when the government was seeking to raise production levels and stabilise energy revenues.
“Progressing this development could add approximately 150,000 barrels per day to Nigeria’s oil production, representing a significant step toward strengthening our national energy security and economic resilience,” he said.
Beyond the immediate production gains, Mr Ojulari said the settlement underscored the value of collaboration and persistence in resolving complex industry disputes that had historically slowed investment in the sector.
He emphasised that the breakthrough demonstrated what could be achieved when stakeholders worked together with a shared commitment to unlocking Nigeria’s energy potential for national development.
The NNPC chief added that the agreement marked an important milestone in the effort to position Nigeria’s energy sector for long-term growth, while ensuring that the country maximised the benefits of its vast oil and gas resources.
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The deal brings to an end more than 15 years of disputes surrounding the highly contested oil block and restores regulatory certainty to one of Nigeria’s most commercially promising deepwater assets.
Under the new arrangement signed in Abuja , the parties agreed to revised terms that reflect current regulatory and fiscal frameworks in Nigeria’s oil sector, particularly the provisions of the Petroleum Industry Act. The settlement replaces earlier arrangements and provides a clearer framework for the development of the asset.
With the dispute now resolved, the path is open for a Final Investment Decision on the Zabazaba–Etan deepwater project. Once developed, the field is expected to add approximately 150,000 barrels per day to Nigeria’s oil production capacity, providing a significant boost to national output and strengthening the country’s long-term energy outlook.
