By Abdullateef Bambgose
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has dismissed claims by the Atiku Abubakar Media Office regarding the recent resolution of disputes surrounding the OPL 245 oil block, describing them as misrepresentations.
In a statement issued on Wednesday, the Attorney-General said the former Vice President’s remarks attempted to downplay what he described as a landmark achievement by the current administration in resolving a dispute that has lasted nearly three decades.
Fagbemi recalled that 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 May 2002, triggering prolonged litigation and public hearings at the National Assembly.
He explained that the disputes were addressed through the 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, while the block was reallocated to SNEPCo and NAE as joint license holders, with a provision for conversion into an Oil Mining Lease.
According to him, the transactions underwent extensive judicial scrutiny across multiple jurisdictions, including the United States, United Kingdom, and Italy, with no wrongdoing established against the companies involved or the transaction itself.
Fagbemi further disclosed that following delays in converting the block into an Oil Mining Lease, Eni entities and Nigerian Agip Exploration Limited initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID), citing a breach of obligations under the Nigeria–Netherlands Bilateral Investment Treaty. He noted that Nigeria faced potential liabilities exceeding $2 billion.
He clarified that the arbitration, which began in 2020, did not address ownership disputes within Malabu but focused strictly on whether Nigeria breached its treaty obligations. He added that individuals now laying claim to interests in Malabu neither participated in the proceedings nor had legal grounds to do so.
The Attorney-General described OPL 245, located about 150 kilometres offshore, as one of Nigeria’s most commercially viable oil assets, which remained undeveloped for decades due to legal and political disputes.
He said the Tinubu administration’s intervention was aimed at resolving the impasse, reducing financial exposure, and enabling the asset’s development. He added that the project is expected to produce about 150,000 barrels of oil per day and boost gas exports linked to Nigeria LNG.
Fagbemi also cited a recent Court of Appeal ruling in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge to the allocation, describing it as statute-barred and an abuse of court process.
He warned that continued opposition to the resolution raises concerns about hidden interests, stating that such criticisms are not driven by patriotism but by self-serving motives.
According to him, attempts to undermine the resolution threaten national interest by hindering the development of a critical asset capable of delivering economic benefits, increasing government revenue, and strengthening investor confidence.
He urged Nigerians to disregard such narratives and support efforts aimed at unlocking the country’s economic potential.
The statement reaffirmed the Federal Government’s commitment to prioritising national interest and ensuring that strategic assets like OPL 245 contribute meaningfully to the country’s development.
