By Dennis Okechukwu
The Attorney-General of the Federation and Minister of Justice, Lateef Olasunkanmi Fagbemi, has responded to media reports credited to the media office of Atiku Abubakar, describing them as misleading representations of the recent resolution of disputes surrounding the OPL 245 oil block.
According to the Attorney-General, the former Vice-President’s comments attempt to downplay what he described as a landmark achievement by the administration of Bola Ahmed Tinubu in resolving a dispute that has lingered for nearly three decades.
He recalled that OPL 245 was initially awarded to Malabu Oil & Gas Ltd in April 1998, revoked in July 2001, and later reassigned to Shell Nigeria Ultra-Deep Limited in May 2002—developments that triggered prolonged litigation and legislative scrutiny.
The disputes were eventually addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell Nigeria Ultra-Deep Limited (now Shell Nigeria Exploration and Production Company Limited—SNEPCo), and Nigerian Agip Exploration (NAE)/Eni entities. Under the agreement, Malabu relinquished its claims in exchange for compensation, while the Federal Government reallocated the block to SNEPCo and NAE as joint license holders, with a commitment to convert it into an Oil Mining Lease (OML).
Fagbemi noted that the agreement and related transactions underwent extensive judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom, and Italy, with no findings of wrongdoing against the companies involved.
He added that following delays in converting OPL 245 into an OML, Eni entities and Nigerian Agip Exploration initiated arbitration against Nigeria at the International Centre for Settlement of Investment Disputes, alleging a breach of obligations under the Nigeria–Netherlands Bilateral Investment Treaty. This exposed Nigeria to potential liabilities exceeding $2 billion.
The Attorney-General stressed that the arbitration, which began in 2020, focused solely on treaty obligations and licensing delays—not ownership disputes involving Malabu. He also pointed out that individuals now claiming interests in Malabu neither participated in nor had legal standing in those proceedings.
Describing OPL 245 as one of Nigeria’s most commercially viable offshore assets—located about 150 kilometres from the coast—he said decades of disputes had stalled its development. The current resolution, he explained, is designed to eliminate legal uncertainties, avert financial risks, and unlock the asset’s economic potential.
The project is expected to contribute about 150,000 barrels per day to Nigeria’s oil output and includes major gas export components tied to Nigeria LNG. Fagbemi said the resolution would boost government revenue, strengthen energy security, and restore investor confidence.
He further cited the Court of Appeal’s decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge to the allocation of the oil block, ruling it statute-barred and an abuse of court process.
Fagbemi concluded that continued opposition to the resolution, despite clear legal and economic benefits, raises concerns about the motives behind such criticisms. He argued that such resistance is driven by narrow, self-serving interests rather than patriotism and warned that it could undermine national progress.
He urged Nigerians to remain cautious of misleading narratives and to support efforts aimed at maximizing the value of critical national assets for the benefit of the country.