Italian oil company Eni has opted to temporarily halt arbitration proceedings related to the oilfield dispute concerning OPL 245 with the Nigerian government.
This decision allows both parties time to engage in discussions regarding the conversion of a license from prospecting to one for production.
The OPL 245 oilfield is considered one of the most significant in Nigeria.
“Eni has agreed with the Federal Government of Nigeria to mutually and temporarily suspend the arbitration proceedings in order to discuss with the government the necessary steps for achieving the conversion of the license from prospecting into mining (extraction),” stated an Eni spokesperson, confirming the suspension.
This move follows Nigeria’s recent withdrawal of civil claims amounting to $1.1 billion against Eni, linked to corruption allegations in the OPL 245 deal.
Eni’s request to pause the arbitration was made on November 16, a few days into the proceedings, as Nigeria seeks better conditions for the block license.
Eni and Shell were awarded rights to the OPL 245 offshore field in 2011, but disputes have impeded its exploitation.
A Milan appeals court confirmed Eni and Shell’s acquittal over a corruption case related to the acquisition of OPL 245 in 2022.
The recent developments indicate a potential resolution of long-standing disputes between Eni and the Nigerian government.