By Seun Ibiyemi
The Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, has dismissed criticisms from the media office of former Vice-President Atiku Abubakar over the resolution of disputes surrounding the controversial OPL 245 oil block, describing the settlement as a major achievement of the current administration.
In a press statement issued on March 25, Fagbemi accused Atiku’s camp of misrepresenting facts and attempting to downplay what he called a “landmark” resolution of a dispute that had lingered for nearly three decades.
The Attorney-General recalled that the oil block, initially awarded to Malabu Oil & Gas Ltd in 1998, became the subject of protracted legal battles following its revocation in 2001 and subsequent reallocation in 2002 to Shell Nigeria Ultra-Deep Limited, now succeeded by Shell Nigeria Exploration and Production Company Limited (SNEPCo), alongside Nigerian Agip Exploration (NAE).
According to him, the disputes were addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, SNEPCo and Eni-linked entities, under which Malabu relinquished its claims in exchange for compensation, while the government committed to converting the block into an Oil Mining Lease.
Fagbemi noted that the agreement and related 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 companies involved.
He further disclosed that delays by the Federal Government in converting the licence led Eni and its partners to initiate arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID) in 2020, exposing Nigeria to potential liabilities exceeding $2 billion.
Clarifying the scope of the arbitration, the Attorney-General said it strictly concerned Nigeria’s obligations under the Nigeria–Netherlands Bilateral Investment Treaty and did not involve ownership disputes over Malabu.
He stressed that individuals now claiming interests in the company neither participated in nor had legal standing in the arbitration proceedings.
Highlighting the economic importance of the asset, Fagbemi described OPL 245 as one of Nigeria’s most commercially viable offshore oil blocks, capable of producing about 150,000 barrels of oil per day once fully developed.
He said the Tinubu administration’s intervention had not only resolved long-standing disputes but also averted significant financial risks and created conditions for investment, increased revenue, and enhanced energy security.
The Attorney-General also cited a recent judgment of the Court of Appeal in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd, which dismissed Malabu’s challenge to the allocation of the oil block, ruling it statute-barred and an abuse of court process.
Fagbemi described ongoing criticisms of the resolution as “misleading” and driven by “self-serving interests,” warning that such narratives could undermine national progress.
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“Their posture is not only misleading but ultimately inimical to the collective interest,” he said, urging Nigerians to reject attempts to derail what he termed a lawful and strategic resolution aimed at unlocking economic benefits for the country.
He reaffirmed the Federal Government’s commitment to prioritising national interest and ensuring that the long-delayed development of OPL 245 delivers tangible benefits to citizens.
