The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has faulted recent comments credited to former Vice-President Atiku Abubakar on the resolution of disputes surrounding the OPL 245 oil block, describing them as misleading and inaccurate.
In a statement issued on March 25, Fagbemi said the remarks sought to downplay what he described as a major achievement by the administration of President Bola Tinubu in resolving a dispute that has lasted nearly three decades.
History of the Dispute
The oil block, OPL 245, was originally awarded to Malabu Oil & Gas Ltd in April 1998, revoked in July 2001, and later allocated to Shell Nigeria Ultra-Deep Limited in 2002. The competing claims triggered years of litigation and public hearings at the National Assembly.
The disputes were later addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell’s Nigerian subsidiary—now Shell Nigeria Exploration and Production Company Limited—and Nigerian Agip Exploration, linked to Eni. Under the agreement, Malabu relinquished its claims in exchange for compensation, while the block was reallocated to SNEPCo and Agip as joint license holders.
International Litigation and Arbitration
Fagbemi noted that the transactions arising from the 2011 deal were tested in courts across the United States, the United Kingdom and Italy, with no findings of wrongdoing against the companies involved.
He added that after delays in converting OPL 245 into an Oil Mining Lease, Eni entities and Nigerian Agip Exploration initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes in 2020.
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According to him, the claim exposed Nigeria to potential liabilities exceeding $2 billion over alleged breaches of obligations under the Nigeria–Netherlands Bilateral Investment Treaty.
He stressed that the arbitration focused strictly on whether Nigeria failed in its obligations to investors and did not involve ownership disputes within Malabu.
Economic Significance of OPL 245
The minister described OPL 245 as one of Nigeria’s most valuable deep offshore assets, located about 150 kilometres from the coast, which had remained largely undeveloped due to prolonged legal disputes.
He said the recent resolution is expected to unlock production estimated at about 150,000 barrels per day and support gas exports linked to Nigeria LNG, while boosting government revenue and investor confidence.
Fagbemi said the agreement reached under the Tinubu administration would transform the asset into a viable project with significant economic and social benefits.
Court Ruling and Warning to Critics
The attorney-general also cited a recent judgment of the Court of Appeal in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd, which dismissed Malabu’s challenge to the allocation of the block, ruling that the suit was statute-barred and an abuse of court process.
He criticised continued opposition to the settlement, describing it as contrary to national interest and driven by undisclosed motives.
Fagbemi urged Nigerians to disregard such criticisms, warning against attempts to undermine what he described as a lawful resolution capable of delivering significant benefits to the country.
Rafiyat Sadiq is a political, justice, and human rights reporter with Pinnacle Daily, known for fearless reporting and impactful storytelling. At Pinnacle Daily, she brings clarity and depth to issues shaping governance, democracy, and the protection of citizens’ rights.
