The Federal Government has strongly defended the recent resolution of disputes surrounding the controversial OPL 245 oil block, describing opposition to the deal as driven by selfish interests rather than national concern.
In a press statement issued by the Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, the government dismissed claims made by the media office of former Vice-President Atiku Abubakar, accusing them of misrepresenting what it called a landmark achievement.
The statement outlined the complex history of OPL 245, which dates back to its initial award to Malabu Oil & Gas in 1998, followed by revocation and reallocation to Shell’s Nigerian subsidiary in the early 2000s. These developments triggered years of legal battles and public scrutiny both within Nigeria and internationally.
According to the Attorney-General, the disputes were formally addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell Nigeria Exploration and Production Company Limited (SNEPCo), and Nigerian Agip Exploration (NAE)/Eni. Under the agreement, Malabu relinquished its claims, paving the way for joint licensing and eventual development of the oil block.
The government further emphasized that subsequent investigations and court proceedings in jurisdictions including the United States, the United Kingdom, and Italy did not establish wrongdoing against the companies involved or the transaction itself.
However, delays in converting the oil prospecting license into an oil mining lease led to arbitration proceedings at the International Centre for Settlement of Investment Disputes, where Nigeria faced potential liabilities exceeding $2 billion. The Attorney-General noted that the dispute at ICSID focused strictly on treaty obligations and not on ownership claims related to Malabu.
Highlighting the economic importance of the asset, the government described OPL 245 as one of Nigeria’s most commercially viable offshore oil blocks, capable of producing up to 150,000 barrels per day. The project is also expected to support gas exports linked to Nigeria LNG, boosting revenue and energy security.
The administration of President Bola Ahmed Tinubu maintains that resolving the dispute will unlock long-delayed investment and restore investor confidence in Nigeria’s oil and gas sector.
Citing 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, the Attorney-General argued that the legal position on the matter is now clear.
He concluded by urging Nigerians to disregard criticisms of the settlement, warning that continued opposition could undermine national development and deny citizens the benefits of a critical economic asset.
