Africa’s leading oil producer, Nigeria, has split the highly disputed OPL 245 oil field into four different blocks in a new deal that involves two oil majors, Eni and Shell Plc.
According to a report by Reuters on Monday, the the government said the arrangement will allow development of the long delayed offshore asset.
People familiar with the matter informed Reuters that final contracts tied to the settlement are expected to be signed later as regulatory and commercial processes continue.
The restructuring is aimed at unlocking value from the field and bringing production back to the table.
OPL 245 is one of Nigeria’s most controversial oil blocks. The block was first allocated in 1998 to Malabu Oil and Gas, a company secretly controlled by Dan Etete, who at the time had previously served as Nigeria’s petroleum minister.
The dispute deepened in 2011 when oil majors Royal Dutch Shell and Eni agreed to pay about $1.3 billion to acquire rights to the block. Prosecutors in Nigeria and Europe later alleged that a large portion of that money was diverted as bribes to politicians and middlemen, rather than going fully to the Nigerian government.
The case triggered years of investigations and trials in multiple jurisdictions, including Italy, the United Kingdom and Nigeria. In 2021, an Italian court in Milan acquitted Shell and Eni, saying there was insufficient evidence to convict them.
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.
How the new oilfield structure may work
The division of the field into four blocks is expected to simplify investment decisions and operational management. Each block may be developed separately under different commercial terms, people familiar with the matter said.
Nigeria’s government has for years pushed for a resolution that would bring the offshore reserve into production. The country depends heavily on crude oil revenue, and idle fields have limited output growth.
Deep offshore development requires high capital expenditure and advanced production technology.
The move also comes as Nigeria seeks to improve investor confidence in its upstream sector. Authorities have been promoting open licensing rounds and asset optimisation to raise domestic production capacity.
Why the deepwater field matters to Nigeria
Moreover, more than 60% of Nigeria’s total oil production comes from offshore field. The country currently produces around 1.6 million barrels of crude per day.
The state-owned oil firm, NNPC Limited, said last December it mayreduce exposure to selected oil and gas holdings.
The company previously said it could sell at least 25% equity stakes in some upstream assets.
Industry players expect indigenous producers to lead potential purchases. Local operators have expanded rapidly after acquiring mature fields from international oil majors.
For instance, a consortium known as Renaissance Energy Consortium acquired Shell’s onshore assets for $2.4 billions earlier in the year. Since then, the group has worked on developing ageing reservoirs.
Similarly, Seplat Energy expanded its position in Nigeria’s upstream sector after acquiring assets previously owned by ExxonMobil. Trading houses may also participate in the asset sales. These investors are expected to partner with local operators rather than manage fields directly.
The restructuring of OPL 245 is part of Nigeria’s wider plan to revive dormant reserves and lift crude output. Officials have struggled to increase production because of ageing infrastructure, funding gaps and operational disruptions.
