The Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, has defended the Federal Government’s resolution of the long-standing dispute over the OPL 245 oil block, describing critics of the settlement as driven by “selfish” rather than patriotic interests.
In a statement issued on March 25, 2026, the Attorney-General said recent comments attributed to the media office of former Vice-President, Atiku Abubakar, misrepresented the significance of what he described as a landmark achievement in resolving a dispute that has spanned nearly three decades.
He traced the origins of the controversy to April 1998, when the oil block was initially awarded to Malabu Oil & Gas Ltd, before being revoked in July 2001 and subsequently allocated in May 2002 to Shell Nigeria Ultra-Deep Limited, now succeeded by Shell Nigeria Exploration and Production Company Limited. The competing claims triggered years of litigation and legislative scrutiny.
According to the statement, the disputes were addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, SNUD (SNEPCo), and Nigerian Agip Exploration (NAE)/Eni entities. Under the agreement, Malabu relinquished its claims to OPL 245, while the Federal Government reallocated the block to SNEPCo and NAE as joint license holders, with a commitment to convert the asset into an Oil Mining Lease.
The Attorney-General noted that the transactions arising from the 2011 agreement underwent extensive judicial review in multiple jurisdictions, including the United States, the United Kingdom and Italy, with no findings of wrongdoing against the companies involved or the transaction itself.
He further disclosed that following delays in converting the licence, Eni entities and Nigerian Agip Exploration initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes, citing alleged breaches of the Nigeria–Netherlands Bilateral Investment Treaty. The proceedings, which began in 2020, exposed Nigeria to potential liabilities exceeding $2 billion.
Fagbemi clarified that the arbitration focused strictly on whether Nigeria had failed in its treaty obligations regarding the timely conversion of the licence, and not on ownership disputes relating to Malabu. He added that individuals now laying claim to interests in the company neither participated in nor had legal standing in the proceedings.
Describing OPL 245 as one of Nigeria’s most commercially viable deep offshore assets—located about 150 kilometres from the coast—the Attorney-General said it had remained largely undeveloped due to prolonged legal and political disputes.
He stated that the current administration, led by President Bola Tinubu, had taken decisive steps to resolve the impasse, avert significant financial exposure and unlock the asset’s economic potential.
According to him, the project is projected to add about 150,000 barrels per day to Nigeria’s oil production and will be developed using a large-scale floating production system, with gas export components linked to Nigeria LNG.
The statement also referenced a recent appellate court decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), in which the Court of Appeal dismissed Malabu’s challenge to the allocation of OPL 245 to SNEPCo, ruling that the action was statute-barred and an abuse of court process.
Fagbemi argued that continued opposition to the resolution, despite legal clarity and economic benefits, raises concerns about the motives of critics. He maintained that such positions risk undermining efforts to unlock a critical national asset for the benefit of over 200 million Nigerians.
He urged the public to treat contrary narratives with caution and to support initiatives aimed at strengthening economic growth, energy security and investor confidence.
