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From Godwin Tsa, Abuja
Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, has clarified its position on the OPL 245 dispute, saying it is aimed at resolving long-standing issues and avoiding significant financial exposure, and creating the conditions necessary for the asset to be fully developed and brought into production.
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 project is specifically designed around a large-scale floating production system and includes substantial gas export components linked to Nigeria LNG.
It is projected to contribute approximately 150,000 barrels per day to Nigeria’s oil production capacity. However, for decades, it remained largely undeveloped due to persistent legal and political disputes.
In a statement yesterday, Fagbemi accused former Vice President, Atiku Abubakar, of misrepresentations concerning the recent resolution of disputes associated with the oil block, “as he sought to downplay what is, by all objective standards, a landmark achievements of the current administration in brokering the settlement of a protracted dispute spanning nearly three decades.”
He stated that “the present resolution, achieved under the leadership of President Bola Tinubu, transforms 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.”
The minister traced the origin of the controversy to April 1998, when OPL 245 was initially awarded to Malabu Oil & Gas Ltd. The licence was later revoked in July 2001 and reallocated in May 2002 to Shell Nigeria Ultra-Deep Limited, a move that triggered prolonged litigation and public hearings before the National Assembly.
According to him, the dispute was eventually addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell entities—now represented by Shell Nigeria Exploration and Production Company Limited – and Nigerian Agip Exploration Limited.
“Under that Agreement, Malabu relinquished all claims and interests in OPL 245 for valuable consideration, while the Federal Government reallocated the block… as joint license holders,” he stated.
The minister noted that the transactions arising from the 2011 agreement were subjected to extensive judicial scrutiny across multiple jurisdictions, including the United States, the United Kingdom, and Italy, with no findings of wrongdoing against the companies involved.
However, delays by Nigeria in converting the oil block into an Oil Mining Lease (OML) led to arbitration proceedings in 2020 at the International Centre for Settlement of Investment Disputes.
“Nigeria faced a potential liability exceeding $2 billion in damages and associated costs,” Fagbemi warned, highlighting the financial exposure confronting the country prior to the resolution.
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He clarified that the arbitration focused strictly on treaty obligations and licensing issues, not ownership disputes involving Malabu.
“At no point did the individuals now laying claim… initiate proceedings in that forum, nor did they possess a legal basis to intervene.”
Fagbemi described OPL 245 as one of Nigeria’s most commercially viable offshore assets, located about 150 kilometres from the coastline, but left undeveloped for decades due to legal and political disputes.
He said the Tinubu administration’s intervention has now created a pathway for its full development.
“For decades, OPL 245 symbolised unrealised national potential. The present resolution… transforms it into a viable and bankable development opportunity,” he said.
According to the Attorney-General, the oil block is projected to produce about 150,000 barrels per day and will be developed using a large-scale floating production system, with gas export components linked to Nigeria LNG.
The Minister also cited a recent Court of Appeal judgment in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge to the allocation of the oil block, ruling that the case was statute-barred and an abuse of court process.
Fagbemi expressed concern over continued opposition to the resolution, suggesting that such criticisms may be driven by undisclosed personal interests rather than national considerations.
“The persistence of these criticisms… strongly suggests that they are driven not by patriotism or objective reasoning, but by undisclosed and self-serving interests,” he said.
He warned that attempts to undermine the resolution could derail a strategic effort aimed at unlocking economic value for the country. “Those advancing such narratives… represent an attempt to frustrate a lawful and strategic resolution that stands to unlock immense value for the Nigerian people.”
Fagbemi enjoined Nigerians to remain vigilant and reject efforts aimed at derailing progress.
“The national interest must not be sacrificed on the altar of hidden agendas,” he said.
The Federal Government maintained that the resolution of the OPL 245 dispute marks a significant milestone in Nigeria’s oil and gas sector, with the potential to boost production, increase revenue, and restore investor confidence.
