Nigeria has approved a $10.3 billion deepwater offshore oil project led by Eni, marking one of the largest recent upstream investments in the country’s energy sector.
The development targets the Zabazaba and Etan fields located within the controversial OPL 245 block, an asset that has been mired in legal and regulatory disputes for years.
The project will involve the installation of a floating production storage and offloading vessel (FPSO), alongside extensive subsea infrastructure to support extraction.
According to project estimates, the fields hold nearly 560 million barrels of oil equivalent and are expected to produce approximately 150,000 barrels per day at peak output. First oil is targeted for 2029.
Resolution of Long-Running Disputes
Approval of the investment follows a resolution of longstanding legal battles involving Eni and Shell over rights to OPL 245.
The Nigerian government restructured the block into four separate licenses, including Petroleum Mining Leases PML 102 and 103, and Petroleum Prospecting Leases PPL 2011 and 2012. These are operated by Nigerian Agip Exploration in partnership with NNPC Ltd and Shell.
This restructuring effectively cleared the path for renewed investment and operational activity.
The approval aligns with Nigeria’s broader strategy to ramp up crude oil production and attract foreign capital into offshore assets, which are generally less vulnerable to disruptions in the Niger Delta.
Authorities are targeting production of 1.8 million barrels per day in the near term, with a longer-term goal of reaching 3 million barrels per day by 2030.
Broader Investment Momentum
The Eni-led project is part of a wider push to revitalize Nigeria’s oil sector. In late 2025, the government launched a licensing round covering 50 oil and gas blocks, drawing interest from major international players including TotalEnergies, ExxonMobil, Shell, and Chevron.
According to NNPC Ltd, these commitments could translate into approximately $24 billion in upstream investments, signaling renewed confidence in Nigeria’s energy sector following years of uncertainty.
With regulatory hurdles easing and large-scale capital commitments returning, Nigeria is positioning its offshore sector as a cornerstone of future production growth. The success of the OPL 245 redevelopment will likely serve as a key test case for investor confidence and policy stability in the country’s oil industry.
