Eni’s Pause on World Bank Arbitration: What’s Going On?

Eni, the Italian oil company, has put a pause on its World Bank arbitration regarding the OPL 245 oilfield dispute with the Nigerian government. This move is to give them time to talk about changing the license from prospecting to production. The suspension of the arbitration was confirmed by Eni, and it’s seen as a step towards resolving the issues surrounding the OPL 245 oilfield, which is a big deal in Nigeria. Eni and the Nigerian government have agreed to temporarily suspend the arbitration proceedings so they can discuss the necessary steps for converting the license from prospecting to mining (extraction). This decision comes after Nigeria started withdrawing civil claims amounting to $1.1bn against Eni related to corruption allegations in the OPL 245 deal. Eni made the request to halt the arbitration a few days after it began, and Nigeria is now seeking better conditions for the block license. The OPL 245 offshore field rights were awarded to Eni and Shell in 2011, but due to various disputes, the area has never been exploited. In 2022, a Milan appeals court upheld the acquittal of Eni, its CEO, and Shell over a corruption case linked to the acquisition of OPL 245. The signs of Eni and the Nigerian government moving to resolve their remaining disputes emerged in October, during a preliminary hearing in a Milan court on an alleged fraud over a failed 2019 Eni tanker deal. Eni also withdrew its fraud complaint against the Nigerian company Oando and its former head, Boyo Omamofe. In November, an Italian judge decided to drop proceedings for all defendants, stating that the alleged crimes may have been committed abroad and therefore did not fall within his jurisdiction. On September 4, Eni agreed to sell its Nigerian onshore subsidiary to Oando, pending local and regulatory authorization.