The Federal Government has defended the resolution of the long-standing OPL 245 oil block dispute, describing it as a landmark achievement that protects Nigeria from over $2 billion in potential liabilities, while accusing critics of pursuing selfish and unpatriotic interests.
A statement personally signed on Wednesday by Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, dismissed claims attributed to the media office of former Vice-President, Atiku Abubakar, saying they misrepresented facts surrounding the resolution of the oil asset.
Fagbemi said the settlement brings to a close a dispute that has lingered for nearly three decades, stressing that the development represents a major step toward unlocking economic value and restoring investor confidence in Nigeria’s oil and gas sector.
The OPL 245 block, originally awarded to Malabu Oil & Gas Ltd in 1998, was revoked in 2001 and reallocated in 2002 to Shell Nigeria Ultra-Deep Limited, triggering years of litigation and public scrutiny.
The dispute was later 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 entities.
Under the agreement, Malabu relinquished all claims to the oil block, while the Federal Government reallocated the asset to SNEPCo and NAE as joint license holders, with a commitment to convert it into an Oil Mining Lease.
The transactions arising from the agreement underwent extensive judicial scrutiny across multiple jurisdictions, including the United States, the United Kingdom, and Italy, with no wrongdoing established against the companies involved.
However, delays in converting OPL 245 into an Oil Mining Lease led to arbitration proceedings at the International Centre for Settlement of Investment Disputes, where foreign investors claimed that Nigeria breached its obligations under a bilateral investment treaty.
The case exposed the country to potential liabilities exceeding $2 billion.
According to Fagbemi, the recent resolution effectively eliminates this financial risk and clarifies Nigeria’s obligations, noting that the arbitration focused strictly on treaty compliance and not on ownership disputes involving Malabu.
He further stated that individuals currently criticising the resolution neither participated in the arbitration nor had legal standing in proceedings centred on sovereign obligations and licensing decisions.
OPL 245, located about 150 kilometres offshore, is widely regarded as one of Nigeria’s most commercially viable oil assets.
For years, it remained undeveloped due to legal and political disputes, limiting its contribution to national revenue.
With the resolution in place, the asset is now positioned for development, with projections indicating it could contribute up to 150,000 barrels per day to Nigeria’s oil production. The project is expected to include a large floating production system and gas export infrastructure linked to Nigeria LNG.
The administration of President Bola Tinubu has been credited with taking decisive action to resolve the dispute, thereby transforming OPL 245 from a symbol of missed opportunities into a viable economic asset capable of boosting government revenue, enhancing energy security, and attracting investment.
Further strengthening the government’s position, the Court of Appeal in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025) dismissed challenges to the allocation of the block, ruling them statute-barred and an abuse of court process.
Fagbemi described ongoing opposition to the resolution as misleading and contrary to national interest, arguing that such criticism appears driven by undisclosed motives rather than objective reasoning.
He warned that attempts to undermine the agreement could frustrate efforts to unlock the full value of the asset and deny Nigerians the economic and developmental benefits tied to its exploitation.
The Attorney-General urged Nigerians to remain discerning and to reject narratives aimed at derailing progress, emphasising that the resolution of the OPL 245 dispute represents a significant milestone in the country’s drive to harness its natural resources for sustainable development.
