Justice Minister Faults Atiku’s Comment on Resolved OPL 245 Dispute
The Attorney-General of the Federation (AGF), Lateef Fagbemi, SAN, on Wednesday faulted the claim by former Vice President, Atiku Abubakar, that the disputes associated with the OPL 245 oil block have not been resolved.
This is contained in a statement by Fagbemi on Wednesday in Abuja.
The Minister of Justice was responding to media reports attributed to the Abubakar Media Office, which he said contained misrepresentations concerning the recent resolution of disputes associated with the OPL 245 oil block.
“Atiku downplayed the landmark achievement of the current administration in brokering the settlement of a protracted dispute of the OPL 245 spanning nearly three decades.
“The present resolution, achieved under the leadership of President Bola Tinubu, transformed it into a viable and bankable development opportunity capable of delivering substantial economic and social benefits, including increased government revenue, enhanced energy security, and renewed investor confidence.
“For decades, OPL 245 remained largely undeveloped, which symbolised unrealised national potential due to persistent legal and political disputes.
“The decisive action taken by Tinubu is aimed at resolving long-standing issues, avoid significant financial exposure, and create the conditions necessary for the asset to be fully developed and brought into production’’.
According to the minister , the OPL 245 is projected to contribute approximately 150,000 barrels per day to Nigeria’s oil production capacity.
The project, he said was designed around a large-scale floating production system and includes substantial gas export components linked to Nigeria LNG.
“The public should be guided by the most recent and authoritative judicial pronouncement on the matter.
“In Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025) 15 NWLR (Pt 2009) 551, the Court of Appeal dismissed Malabu’s challenge to the allocation of OPL 245 to Shell Nigeria Exploration and Production Company Limited, holding that the action was statute-barred and constituted an abuse of court process.
“The persistence of these criticisms, inspite of clear legal, commercial, and national interest considerations, strongly suggests that they are driven not by patriotism or objective reasoning, but by undisclosed and self-serving interests.
“Their posture is not only misleading but ultimately inimical to the collective interest, as it seeks to deny over 200 million Nigerians the economic and developmental benefits of a critical national asset.’’
The block was originally awarded to Malabu Oil & Gas Ltd (Malabu) in April 1998, revoked in July 2001, and subsequently allocated to Shell Nigeria Ultra-Deep Limited (SNUD) in May 2002.
The minister noted that the actions gave rise to extensive litigation and public hearings before the National Assembly.
“The disputes arising from the revocation and reallocation were eventually addressed through the 2011 Resolution Agreement involving the Federal Government of Nigeria (FGN), Malabu, SNUD (now succeeded by Shell Nigeria Exploration and Production Company Limited SNEPCo), and Nigerian Agip Exploration (NAE)/Eni entities.
“Under that Agreement, Malabu relinquished all claims and interests in OPL 245 for valuable consideration, while the federal government reallocated the block to SNUD (SNEPCo) and NAE as joint license holders.
“The agreement also required the Federal Government to convert OPL 245 into an Oil Mining Lease (OML).’’
The AGF added that the transactions and actions arising from the 2011 agreement were subjected to rigorous judicial scrutiny in multiple criminal and civil proceedings across jurisdictions, including the U.S, , the UK and Italy.
He also noted that these proceedings did not establish any wrongdoing against Eni, SNEPCo, or the transaction as a whole.
“Following the conclusion of these litigations and in the light of the federal government’s delay in converting OPL 245 into an OML, Eni entities and Nigerian Agip Exploration Limited initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID).
“They contended that the delay constituted a breach of Nigeria’s obligations under the Nigeria–Netherlands Bilateral Investment Treaty.
“As a result, Nigeria faced a potential liability exceeding US$2 billion in damages and associated costs.’’
The minister noted that although the ICSID arbitration, which commenced in 2020, received considerable public attention, none of the stakeholders now being referenced by the former Vice-President participated in those proceedings.
“The arbitration was not concerned with questions of ownership of Malabu or internal disputes within the company.
“It rather focused strictly on whether Nigeria had wrongfully delayed or refused the conversion of OPL 245 into an OML, and whether such actions breached its treaty obligations to foreign investors.
“At no point did the individuals now laying claim to interests in Malabu initiate proceedings in that forum, nor did they possess a legal basis to intervene in a dispute centered on sovereign obligations and licensing decisions.
“ It is also important to highlight that OPL 245, located in deep offshore waters approximately 150 kilometres from Nigeria’s coastline, has long been regarded as one of the country’s most commercially promising hydrocarbon assets.’’
The minister urged Nigerians to view such interventions with the caution they deserve and reject efforts aimed at derailing progress for narrow personal or political gain.
He stressed that the national interest must not be sacrificed on the altar of hidden agendas. FG to Begin 2024, 2025 Capital Budget Payments
