The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has faulted criticisms trailing the Federal Government’s resolution of the long-standing dispute over the OPL 245 oil block, describing such opposition as self-serving and not in the national interest.
Fagbemi, in a statement on Wednesday, said comments attributed to the Atiku Abubakar Media Office misrepresented what he described as a landmark achievement by the current administration in resolving a dispute that has lingered for nearly three decades.
He recalled that OPL 245 was originally awarded to Malabu Oil and Gas Limited in 1998, revoked in 2001, and subsequently reallocated to Shell Nigeria Ultra-Deep Limited in 2002, developments that triggered prolonged litigation and legislative scrutiny
According to him, the disputes were addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell and Eni entities, under which Malabu relinquished its claims while the block was reallocated to Shell and its partners.
The AGF noted that the agreement and subsequent transactions were subjected to extensive judicial scrutiny across multiple jurisdictions, including the United States, the United Kingdom and Italy, with no wrongdoing established against the companies involved.
He further disclosed that following delays in converting the asset into an Oil Mining Lease, Eni and its affiliates initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes, exposing the country to potential liabilities exceeding $2bn.
Fagbemi explained that the arbitration, which commenced in 2020, was strictly focused on whether Nigeria breached its treaty obligations and did not entertain claims relating to ownership disputes within Malabu.
He added that none of the parties now raising objections participated in the arbitration proceedings or had legal standing to intervene in matters concerning sovereign obligations.
The minister emphasised that OPL 245, located about 150 kilometres offshore, is one of Nigeria’s most commercially viable hydrocarbon assets but remained undeveloped for years due to legal and political disputes.
He said the Tinubu administration’s intervention had resolved the impasse, paving the way for full development of the asset and averting significant financial exposure.
According to him, the oil block is projected to contribute about 150,000 barrels per day to Nigeria’s production capacity, with additional gas export potential linked to Nigeria LNG.
Fagbemi said the development would boost government revenue, enhance energy security and restore investor confidence in the country’s oil and gas sector.
He also cited a recent Court of Appeal judgment which dismissed Malabu’s challenge to the allocation of the oil block, describing the suit as statute-barred and an abuse of court process.
The AGF, however, warned that continued opposition to the resolution, despite clear legal and economic benefits, raises serious concerns about the motives of those involved.
He said such criticisms appear aimed at frustrating a lawful and strategic resolution that would unlock significant value for the country.
Fagbemi urged Nigerians to disregard what he described as misleading narratives and support efforts to maximise the benefits of the asset for national development.
“The national interest must not be sacrificed on the altar of hidden agendas,” he said.
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