A very rich oil block was caught in politics, corruption allegations, and court cases for decades.
Now the government has settled the dispute so oil production can finally begin.
If you want, I can also explain the full OPL 245 “Malabu oil scandal” story (1998–2026) — it’s one of the biggest corruption cases in global oil history.
Bottom line:
The Tinubu-brokered settlement removes a major legal
obstacle in Nigeria’s oil industry and could lead to new deepwater oil
production and billions of dollars in investment.
Explain
The OPL 245 dispute is one of the biggest and longest oil controversies in Nigeria’s history. Here is the explanation in simple terms.
1. What OPL 245 is
OPL 245 (Oil Prospecting Licence 245) is a huge offshore oil block in Nigeria believed to contain about 9 billion barrels of crude oil.
It is located in the deep waters of the Niger Delta and is considered one of the most valuable oil blocks in Africa.
2. How the problem started (1998)
In 1998, the Nigerian government under Sani Abacha awarded the oil block to a small Nigerian company called Malabu Oil & Gas.
The problem:
The company was secretly linked to Dan Etete, who was Nigeria’s former petroleum minister.
Many people said the block was given improperly.
3. Government takes the block back
In 2001, the government of Olusegun Obasanjo revoked the license from Malabu and gave it to Royal Dutch Shell.
This triggered legal battles because Malabu said the block belonged to them.
4. The $1.1 billion deal (2011)
In 2011, during the government of Goodluck Jonathan, a deal was reached:
Shell and Eni agreed to buy the block.
They paid $1.1 billion to the Nigerian government.
But investigations later claimed:
The money was transferred to Malabu Oil & Gas.
Large amounts were allegedly shared among politicians and middlemen.
This triggered international corruption investigations.
5. Global court cases
The scandal led to court cases in:
Nigeria
Italy
United Kingdom
United States
Executives from Shell and Eni were accused of bribery.
However:
In 2021, an Italian court cleared Shell and Eni of corruption charges.
6. Why the oil field was never developed
Because of the legal fights and corruption claims, companies could not start the project.
The main project there is called Zabazaba–Etan, which could produce about 150,000 barrels of oil per day.
But the dispute kept it frozen for over 15 years.
7. What President Tinubu just did
In 2026, Bola Ahmed Tinubu helped negotiate a settlement between the Nigerian government and oil companies.
This agreement:
Ends the legal disputes.
Allows the Zabazaba oil project to start.
Could bring billions of dollars of investment into Nigeria.