Italian oil company Eni has decided to temporarily suspend arbitration proceedings related to the OPL 245 oilfield dispute with the Nigerian government.

The move aims to provide room for discussions regarding the conversion of the license from prospecting to production.

Eni confirmed the suspension of arbitration at the World Bank’s dispute settlement body.

This development follows Nigeria’s recent withdrawal of civil claims totaling $1.1 billion against Eni concerning alleged corruption in the OPL 245 deal.

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The Nigerian government is currently seeking improved conditions for the block license compared to previous discussions.

Eni and Shell were awarded rights to the offshore field in 2011, leading to a series of disputes that are now nearing resolution.

In 2022, a Milan appeals court acquitted Eni, its CEO, and Shell in a corruption case related to the acquisition of OPL 245.

The recent decision to suspend arbitration suggests a potential resolution to the long-standing disputes between Eni and the Nigerian government.