Italian oil firm Eni and Shell confirmed Friday they have been awarded a share in a deepwater oil block in Nigeria, ending a decade of legal dispute over the huge asset.
"We can confirm that the federal government of Nigeria has allocated deepwater block OPL 245 to Nigerian Agip Exploration and Shell Nigeria Exploration Company," Shell spokesman Tony Okonedo told Platts in Lagos.
"[Eni subsidiary] Agip and Shell now have 50% each in OPL 245, which Agip will operate," Okonedo said. "Any payment relating to issuance of the license was made only to the federal government of Nigeria. No payments were made by either Agip or Shell to Malabu Oil and Gas."
Eni said it will operate the block.
The companies didn't confirm how much was paid or the size of the reserves but the Department of Petroleum Resources said OPL 245 holds around 1 billion barrels.
A spokesman for Malabu also confirmed the formal transfer of the block but declined to give details.
"All I can tell you for now is that all the parties reached an amicable settlement of the dispute over the block," the spokesman said.
The Nigerian government in 2010 revoked Shell's license on OPL 245 and awarded it to Malabu Oil, which is owned by former oil minister Dan Etete.
OPL 245 is located next to large oil fields including the Agbami offshore field operated by Chevron, Total's Akpo field, and Shell's Nnwa and Doro fields in OPLs 218 and 219.
