Tunde Bakare
The Federal Government has rejected former Vice-President Atiku Abubakar’s position on the resolution of the controversial OPL 245 oil block dispute.
Government maintains its intervention as a decisive move that saved Nigeria from over $2 billion in potential liabilities and unlocked a major dormant asset.
In a statement issued Wednesday, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, accused Atiku’s media office of misrepresenting facts surrounding the long-running dispute, insisting that the Tinubu administration’s actions marked a “landmark achievement” after nearly three decades of legal and commercial uncertainty.
Fagbemi traced the origin of the dispute to 1998 when OPL 245 was awarded to Malabu Oil & Gas, its revocation in 2001, and subsequent allocation to Shell Nigeria Ultra-Deep Limited in 2002, developments that triggered protracted litigation and legislative probes.
He noted that a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell entities, and Eni interests led to Malabu relinquishing its claims in exchange for compensation, while the oil block was reallocated to Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Nigerian Agip Exploration (NAE).
According to him, the agreement and subsequent transactions were subjected to extensive judicial scrutiny across multiple jurisdictions, including the United States, United Kingdom, and Italy, with no findings of wrongdoing against the oil companies or the deal itself.
The AGF further disclosed that Nigeria faced arbitration at the International centre for settlement of Investment Disputes (ICSID) after Eni entities alleged that delays in converting OPL 245 into an Oil Mining Lease breached the Nigeria–Netherlands Bilateral Investment Treaty.
He stressed that the arbitration, which began in 2020, exposed Nigeria to potential damages exceeding $2 billion, clarifying that the dispute was strictly about sovereign obligations and not ownership claims involving Malabu.
“None of the parties now making claims or referenced by the former Vice-President participated in the arbitration proceedings,” Fagbemi stated, adding that they lacked legal standing in the matter.
The AGF described OPL 245, located about 150 kilometres offshore as one of Nigeria’s most commercially viable oil blocks, projected to produce about 150,000 barrels per day upon full development.
He said the Tinubu administration’s intervention not only resolves longstanding disputes but also paves the way for increased oil production, improved energy security, and enhanced investor confidence.
Fagbemi also cited a recent Court of Appeal ruling in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s claims as statute-barred and an abuse of court process, reinforcing the legality of the current arrangement.
The Attorney-General warned that continued opposition to the resolution suggests “self-serving interests” rather than genuine concern for national development.
He urged Nigerians to reject what he described as attempts to derail progress, insisting that the resolution of OPL 245 represents a critical step toward unlocking economic benefits for over 200 million citizens.
“The national interest must not be sacrificed on the altar of hidden agendas,” he said.