By David Akinadewo-Adekahunsi
The Federal Government has dismissed criticisms surrounding the recent resolution of disputes over Oil Prospecting Licence (OPL) 245, describing them as misleading and driven by “selfish” rather than patriotic considerations.
In a press statement issued on Wednesday, the Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, accused critics, particularly the media office of former Vice-President Atiku Abubakar, of misrepresenting facts relating to the long-standing oil block dispute.
Fagbemi maintained that the resolution of the OPL 245 matter represents a landmark achievement by the administration of President Bola Tinubu, noting that the dispute had lingered for nearly three decades.
He traced the origins of the controversy to 1998, when the oil block was awarded to Malabu Oil & Gas Limited, before its revocation in 2001 and subsequent allocation in 2002 to Shell Nigeria Ultra-Deep Limited (SNUD), now succeeded by Shell Nigeria Exploration and Production Company Limited (SNEPCo).
The developments, he said, triggered years of litigation and legislative scrutiny.
According to the Attorney-General, 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 in exchange for compensation, while the oil block was reallocated to SNEPCo and NAE as joint licence holders, with a provision for its conversion into an Oil Mining Lease (OML).
Fagbemi noted that the transactions arising from the 2011 agreement were subjected to judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom and Italy, none of which established wrongdoing against the companies involved or the transaction itself.
He explained that following delays by Nigeria 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) in 2020, citing breaches of obligations under the Nigeria–Netherlands Bilateral Investment Treaty.
The Attorney-General warned that the country faced potential liabilities exceeding $2 billion in damages and associated costs arising from the arbitration.
He clarified that the ICSID proceedings were limited to issues of treaty obligations and licensing decisions, and did not involve ownership disputes concerning Malabu Oil & Gas Limited.
Fagbemi further highlighted the economic significance of OPL 245, located about 150 kilometres offshore, describing it as one of Nigeria’s most commercially viable hydrocarbon assets.
He noted that the block had remained largely undeveloped due to prolonged legal and political disputes.
With the recent resolution, he said, the asset is now positioned for development, with projections indicating a potential output of about 150,000 barrels of oil per day, alongside gas export components linked to Nigeria LNG.
He added that the project is expected to boost government revenue, enhance energy security and restore investor confidence in Nigeria’s oil and gas sector.
Citing the Court of Appeal’s decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), the Attorney-General said the court dismissed Malabu’s challenge to the allocation of the oil block, ruling that the action was statute-barred and constituted an abuse of court process.
Against this backdrop, Fagbemi described ongoing criticisms of the resolution as “deeply concerning”, arguing that they undermine a lawful and strategic effort to unlock economic value for the country.
“Such narratives are not only misleading but ultimately inimical to the collective interest,” he said, urging Nigerians to reject attempts to derail progress for personal or political gain.
The Attorney-General emphasised that the Tinubu administration remains committed to pursuing policies that safeguard national interests and promote sustainable economic development.
