OPL 245: FG defends deal, labels critics selfish and unpatriotic – THISAGE

The federal government has defended the resolution of the long-running OPL 245 oil block dispute, describing it as a historic achievement that protects Nigeria from over $2 billion in potential liabilities, accusing critics of pursuing selfish and unpatriotic interests.

A statement personally signed on Wednesday by the Attorney General of the Federation and Minister of Justice, Lateef Fagbemi, SAN, rejected claims attributed to the press office of the former Vice President, Atiku Abubakar, saying they had misrepresented the facts regarding the resolution of the oil asset.

Fagbemi said the agreement brings to an end a dispute that has lasted for almost three decades, stressing that the development represents an important step towards unlocking economic value and restoring investor confidence in Nigeria’s oil and gas sector.

Block OPL 245, originally awarded to Malabu Oil & Gas Ltd in 1998, was revoked in 2001 and reassigned in 2002 to Shell Nigeria Ultra-Deep Limited, triggering years of litigation and public scrutiny.

The dispute was subsequently resolved through a 2011 settlement agreement involving the federal government, Malabu, Shell Nigeria Exploration and Production Company Limited (SNEPCo) and the Nigerian Agip Exploration (NAE)/Eni entities.

Under the agreement, Malabu relinquished all rights 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 resulting from the agreement have been subjected to extensive judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom and Italy, with no findings of wrongdoing against the companies involved.

However, delays in converting OPL 245 into a mining lease led to arbitration proceedings at the International Center for Settlement of Investment Disputes, where foreign investors alleged 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, stressing that the arbitration focused strictly on treaty compliance and not on property disputes involving Malabu.

It also said that people currently criticizing the resolution did not participate in the arbitration nor did they have standing in proceedings focused on sovereign obligations and licensing decisions.

OPL 245, located about 150 kilometers offshore, is widely regarded as one of Nigeria’s most profitable oil assets.

For years it remained underdeveloped due to legal and political disputes, limiting its contribution to national revenues.

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’s LNG.

President Bola Tinubu’s administration has been credited with taking decisive action to resolve the dispute, thereby transforming OPL 245 from a symbol of missed opportunities into a vital economic asset capable of increasing public revenues, improving 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 the block award challenges as time barred and abusive of the judicial process.

Fagbemi described the current opposition to the resolution as misguided and against the national interest, arguing that such criticism appears driven by hidden motivations rather than objective reasoning.

He warned that attempts to undermine the agreement could undermine efforts to unlock the full value of the asset and deny Nigerians the economic and development benefits of its exploitation.

The Attorney General urged Nigerians to remain discerning and reject narratives aimed at derailing progress, stressing 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.

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