OPL 245: Background to the 2011 settlement Oil Prospecting Licence (OPL) 245 covers a deep-water offshore area, approximately 150 km off the Niger Delta. In 2011, Shell settled long-standing legal disputes related The Licence granted the rights to Shell and Eni to explore to OPL 245 as part of a transaction with Eni and the for oil within this area. To date, no oil has been produced Federal Government of Nigeria represented by the most from the OPL 245 block. senior officials of the relevant ministries. The Government of Nigeria was a necessary party to this agreement, Key dates in the history of the licence having previously created competing claims to the OPL 245 block by allocating it to two parties: first Malabu, Timeline of litigation and arbitration then Shell, then back to Malabu. APRIL 1998 Malabu awarded licence for OPL 245 MARCH 2001 Shell farms into the block JULY 2001 Government of Nigeria revokes the Malabu Licence MAY 2002 MAY 2002 Shell awarded block by Government of Nigeria Shell commences ICC arbitration proceedings following competitive tender and begins against Malabu to resolve dispute arising from 2001 exploration and appraisal work programme farm-in and subsequent government revocation (drilling continued until 2013) AUGUST 2002 Malabu commences proceedings against the Government of Nigeria and Shell in New York federal court SEPTEMBER 2003 Malabu commences proceedings in Nigeria against the Government of Nigeria, NNPC and Shell DECEMBER 2006 DECEMBER 2006 Government of Nigeria reallocates licence Government of Nigeria settles litigation to Malabu with Malabu APRIL 2007 Shell commences BIT arbitration against the Government of Nigeria for wrongful expropriation FEBRUARY 2008 Government of Nigeria seeks resolution, negotiations commence APRIL 2010 Shell negotiations now include Eni APRIL 2011 Settlement agreed Shell (SNEPCO) and Eni hold the licence 50/50 Eni is the operator Shell refers Eni entity NNPC – ICC - International BIT - Bilateral to multiple is Nigerian Nigerian National Chamber Investment Treaty Shell entities Agip Exploration Petroleum Company of Commerce.