Nigeria has approved a $10.3 billion investment plan by Italian energy company Eni for deepwater oil projects offshore the country, clearing the way for long-delayed developments on the Zabazaba and Etan fields.
The approval was confirmed by the Nigerian Upstream Petroleum Regulatory Commission
(NUPRC), the regulatory body responsible for upstream activities in the country.
The project is positioned as one of the country’s largest upstream commitments in recent years.
According to reports, the investment will focus on the Zabazaba and Etan fields located in offshore OPL 245, an area that has faced years of legal and regulatory delays before restructuring and renewed government backing reopened it for development.
The development plan includes a floating production storage and offloading unit (FPSO) and supporting subsea infrastructure designed to unlock large offshore reserves.
Upstream Online reported that the combined projects are expected to recover around 560 million barrels of oil equivalent, with a production target of about 150,000 barrels per day once fully operational.
First oil production from the field is expected around 2029.
End to long regulatory delays
The approval marks a major step forward for assets that were previously tied up in disputes surrounding OPL 245, one of Nigeria’s most closely watched and controversial offshore blocks.
Nigeria recently split the highly disputed oil field into four different blocks in a new deal that involves two oil majors, Eni and Shell Plc.
The restructuring of the licence into new petroleum mining and prospecting leases helped resolve the long-standing impasse, allowing international operators to return to the block.
The oilfield lies deep offshore and has been inactive for almost three decades due to legal conflicts across multiple jurisdictions.
Located offshore in the Niger Delta, the deepwater asset is believed to hold an estimated 9 billion barrels of oil equivalent, making it one of the largest undeveloped discoveries in West Africa.
Nigeria’s push to raise output
Meanwhile, the approval aligns with Nigeria’s broader strategy to increase crude oil production and attract fresh capital into offshore developments, which are generally seen as more secure than onshore fields affected by theft and disruptions.
Government targets aim to lift national production to around 1.8 million barrels per day in the near term and potentially up to 3 million barrels per day by 2030, according to industry-linked projections cited in sector reports.
In addition, Nigeria has been pushing a wider upstream investment drive.
Reports indicate that several international oil companies have shown renewed interest in offshore licensing rounds, with billions of dollars in potential commitments under review.
The investment is also seen as reinforcing confidence among international oil companies operating in deepwater basins.
Deepwater developments such as Zabazaba and Etan are considered key to offsetting declines from mature onshore fields and expanding long-term production capacity.
With final investment now authorised, attention shifts to project execution timelines, contractor arrangements, and financing structures.
