AGF Defends OPL 245 Resolution, Knocks Atiku Over Criticism

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, has defended the federal government’s resolution of the long-standing OPL 245 oil block dispute, describing criticisms from opposition figures as “selfish”.

Fagbemi was responding to former Vice-President, Atiku Abubakar, who had questioned the credibility and significance of the settlement reached on the matter by the Bola Tinubu administration.

In a statement on Wednesday, the AGF described the resolution as a landmark achievement, noting that it brings closure to a dispute that has spanned nearly three decades and significantly hindered the development of one of Nigeria’s most commercially viable oil assets.

He recalled that OPL 245 was originally awarded to Malabu Oil & Gas Ltd in April 1998, before being revoked in July 2001 and subsequently reassigned in May 2002 to Shell Nigeria Ultra-Deep Limited.

These actions, he said, triggered a chain of disputes that resulted in prolonged litigation across multiple jurisdictions, as well as public hearings at the National Assembly.

According to Fagbemi, efforts to resolve the dispute led to the 2011 Resolution Agreement involving the Federal Government of Nigeria, Malabu Oil & Gas Ltd, Shell Nigeria Ultra-Deep Limited—now succeeded by Shell Nigeria Exploration and Production Company Limited (SNEPCo)—and Nigerian Agip Exploration (NAE), linked to Eni.

Under the agreement, Malabu relinquished all claims and interests in the oil block in exchange for financial consideration, while the federal government reallocated OPL 245 to SNEPCo and NAE as joint licence holders.

The agreement also required the government to convert the oil prospecting licence into an Oil Mining Lease.

He further explained that the transactions arising from the 2011 agreement were subjected to extensive judicial scrutiny in jurisdictions including the United States, the United Kingdom, and Italy, adding that none of the proceedings established any criminal wrongdoing against Eni, SNEPCo, or the transaction as a whole.

Fagbemi noted that despite the earlier settlement, delays by the federal government in converting OPL 245 into an Oil Mining Lease triggered fresh disputes, prompting Eni entities and Nigerian Agip Exploration Limited to initiate arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID) in 2020.

The claimants argued that the delay constituted a breach of Nigeria’s obligations under the Nigeria–Netherlands Bilateral Investment Treaty, exposing the country to potential liabilities exceeding $2 billion in damages and associated costs.

The AGF clarified that the arbitration proceedings were strictly limited to issues of sovereign obligations and licensing delays, and did not address questions relating to the ownership structure of Malabu or internal disputes within the company.

He added that individuals now laying claim to interests in Malabu neither participated in the arbitration nor had any legal basis to intervene in proceedings centred on treaty obligations between Nigeria and foreign investors.

Highlighting the strategic importance of the oil block, Fagbemi stated that OPL 245, located about 150 kilometres offshore in deep waters, has long been regarded as one of Nigeria’s most promising hydrocarbon assets but has remained largely undeveloped due to persistent legal and political disputes.

He disclosed that the asset is projected to produce about 150,000 barrels of oil per day when fully developed and is expected to incorporate a large-scale floating production system, alongside significant gas export components linked to Nigeria LNG.

He said the Tinubu administration’s intervention is aimed at resolving long-standing uncertainties, avoiding significant financial exposure, and creating the conditions necessary for the asset to be developed into a viable and bankable project capable of boosting government revenue, strengthening energy security, and restoring investor confidence in Nigeria’s oil and gas sector.

Fagbemi also drew attention to a recent judgment 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 the oil block, ruling that the suit was statute-barred and constituted an abuse of court process.

He maintained that continued opposition to the resolution, despite clear legal, commercial, and national interest considerations, raises serious concerns about the motives of critics, suggesting that such positions are intended to frustrate a lawful and strategic settlement capable of unlocking significant value for the country.

The AGF warned that such narratives are misleading and ultimately detrimental to the collective interest, as they seek to deny Nigerians the economic and developmental benefits tied to the asset. He urged the public to treat such criticisms with caution and reject attempts to derail progress, stressing that national interest must not be sacrificed for personal or political gain.