The Attorney-General of the Federation, Lateef O. Fagbemi, has dismissed claims by the media office of Atiku Abubakar regarding the resolution of disputes surrounding the OPL 245 oil block, describing the assertions as misleading and inaccurate.
In a statement, the Attorney-General said the recent settlement of the long-running OPL 245 dispute represents a “landmark achievement” by the administration of Bola Tinubu, resolving a controversy that has persisted for nearly three decades.
The oil block, one of Nigeria’s most valuable offshore assets, was originally awarded to Malabu Oil & Gas in 1998 before being revoked in 2001 and reallocated in 2002 to Shell Nigeria Ultra-Deep Limited. The competing claims triggered years of litigation and legislative scrutiny.
Efforts to resolve the dispute culminated in a 2011 agreement involving the Federal Government, Malabu, and oil majors including Shell and Eni. Under the deal, Malabu relinquished its claims in exchange for compensation, while the block was reassigned to joint operators, now led by Shell Nigeria Exploration and Production Company (SNEPCo) and Nigerian Agip Exploration (NAE).
The Attorney-General noted that the agreement and related transactions were subsequently tested in multiple courts across jurisdictions, including the United States, United Kingdom, and Italy, with no findings of wrongdoing against the companies involved.
However, delays by the Federal Government in converting the oil prospecting licence into a full oil mining lease led to arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID), where Eni and its affiliates sought damages exceeding $2 billion for alleged treaty breaches.
According to the statement, the arbitration, which began in 2020, focused strictly on Nigeria’s obligations under international investment agreements and did not involve internal ownership disputes related to Malabu.
The government warned that failure to resolve the matter could have exposed Nigeria to significant financial liabilities, stressing that the current settlement was necessary to protect national interest and restore investor confidence.
Located about 150 kilometres offshore, OPL 245 is estimated to hold substantial hydrocarbon reserves and could add up to 150,000 barrels per day to Nigeria’s oil output once fully developed. The project is also expected to support gas exports linked to Nigeria LNG.
The Attorney-General further cited a recent Court of Appeal ruling in favour of Nigerian Agip Exploration, which dismissed Malabu’s legal challenge as statute-barred and an abuse of court process.
He argued that continued criticism of the settlement, despite legal and commercial clarity, raises concerns about the motives behind such opposition.
“The resolution is aimed at unlocking significant economic value for Nigeria,” the statement said, urging the public to disregard what it described as attempts to derail progress for political or personal interests.
