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Sources report that Eni has halted World Bank arbitration in the Nigerian oilfield dispute


Nov 20, 2023

The logo of Italian multinational energy company Eni was prominently featured at their booth during the LNG 2023 energy trade show in Vancouver, British Columbia, Canada on July 12, 2023. This event showcased the company’s presence in the global energy market and provided an opportunity for Eni to engage with industry professionals and potential partners.

In a recent development, it was reported that Eni has temporarily halted arbitration regarding an oilfield dispute with the Nigerian government. This decision has allowed the company to initiate discussions with Nigerian officials about converting the license for the OPL 245 oilfield from prospecting to mining. Sources with direct knowledge of the matter revealed this information to Reuters, highlighting Eni’s efforts to find a mutually beneficial solution to the ongoing dispute.

Eni confirmed the suspension of the arbitration at the World Bank’s dispute settlement body and stated that they have agreed with the Federal Government of Nigeria to temporarily halt the proceedings. The company expressed its intention to engage in discussions with the government to explore the necessary steps for converting the license and moving forward with mining operations. This approach reflects Eni’s commitment to addressing the dispute through dialogue and negotiation.

This decision follows Nigeria’s withdrawal of civil claims amounting to $1.1 billion against Eni, which were related to allegations of corruption in the OPL 245 deal. By engaging in discussions with the Nigerian government and suspending arbitration, Eni aims to facilitate productive conversations and explore options for resolving the oilfield dispute in a constructive manner. The company’s proactive approach underscores its commitment to finding a resolution that aligns with both parties’ interests.

The development regarding Eni’s arbitration suspension and engagement with the Nigerian government demonstrates the company’s dedication to addressing challenges through diplomatic and strategic efforts. Eni’s decision to explore options for converting the license for the OPL 245 oilfield reflects its commitment to responsible and mutually beneficial operations in the global energy sector.

By Editor

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