The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, has responded to recent media reports from the Atiku Abubakar Media Office, dismissing claims that the resolution of disputes surrounding the OPL 245 oil block is controversial.
According to Fagbemi, those opposing the settlement are motivated by “selfish, not patriotic interests.”
In a statement released on Wednesday, the AGF described the resolution as a landmark achievement of the current administration, bringing closure to a dispute that has lingered for nearly three decades.
The oil block was initially awarded to Malabu Oil & Gas Ltd in 1998, revoked in 2001, and later reallocated to Shell Nigeria Ultra-Deep Limited (SNUD) in 2002, sparking prolonged litigation and public scrutiny.
The dispute was partly addressed under a 2011 Resolution Agreement, in which Malabu relinquished its claims to OPL 245, and the Federal Government reallocated the block to SNUD (now SNEPCo) and Nigerian Agip Exploration (NAE/Eni) as joint license holders. The agreement also required the government to convert the block into an Oil Mining Lease (OML).
Fagbemi noted that subsequent judicial and criminal proceedings across the United States, the United Kingdom, and Italy cleared SNEPCo and Eni of wrongdoing.
However, delays in converting OPL 245 into an OML prompted arbitration at the International Centre for Settlement of Investment Disputes (ICSID), where Nigeria faced potential liabilities exceeding US$2 billion.
“Those now claiming stakes in Malabu did not participate in these arbitration proceedings and had no legal basis to intervene,” the AGF said. “The arbitration focused strictly on Nigeria’s sovereign obligations under the Nigeria–Netherlands Bilateral Investment Treaty.”
Located about 150 kilometres offshore, OPL 245 has long been regarded as one of Nigeria’s most commercially promising hydrocarbon assets. Fagbemi emphasized that the current administration’s decisive action “resolves long-standing disputes, avoids significant financial exposure, and sets the stage for full development of the block.”
The project is projected to contribute approximately 150,000 barrels per day to Nigeria’s oil production capacity. It features a large-scale floating production system and substantial gas export components linked to Nigeria LNG, promising enhanced government revenue, energy security, and renewed investor confidence.
Citing the Court of Appeal ruling in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025) 15 NWLR (Pt 2009) 551, Fagbemi noted that Malabu’s challenge to the allocation of OPL 245 was dismissed, reinforcing the legality of the resolution.
“The persistence of opposition to this settlement, despite clear legal and national interest considerations, signals an agenda driven not by patriotism but by undisclosed personal interests,” he said. “Nigerians should view such interventions with caution and reject attempts to derail progress for narrow personal or political gain.”
Fagbemi concluded by noting the transformative potential of OPL 245 for the nation under President Bola Tinubu’s leadership, calling on all stakeholders to support the development of the asset for the benefit of over 200 million Nigerians.