The Attorney-General of the Federation and Minister of Justice, Lateef O. Fagbemi, has dismissed criticisms by former Vice-President Atiku Abubakar over the federal government’s resolution of the long-standing dispute surrounding Oil Prospecting Licence (OPL) 245, describing the intervention as a landmark achievement in Nigeria’s oil sector.
In a statement on Wednesday, the AGF accused those opposing the settlement of pursuing “selfish and unpatriotic interests,” insisting that the agreement reached under President Bola Tinubu was in the best interest of the country.
Fagbemi said recent comments from Atiku’s media office misrepresented the facts and attempted to downplay what he described as a decisive resolution of a dispute that has lingered for nearly three decades.
He traced the origins of the controversy to 1998, when OPL 245 was awarded to Malabu Oil & Gas, before being revoked in 2001 and subsequently reallocated in 2002 to Shell Nigeria Ultra-Deep Limited. The competing claims triggered years of litigation and legislative scrutiny.
According to him, the disputes were formally addressed in a 2011 resolution agreement involving the federal government, Malabu, Shell’s Nigerian deepwater subsidiary, and Nigerian Agip Exploration/Eni entities. Under the deal, Malabu relinquished its claims in exchange for compensation, while the oil block was reassigned to the joint venture partners, with a provision for its conversion into an Oil Mining Lease (OML).
He noted that the transactions underwent extensive judicial review in multiple jurisdictions, including the United States, United Kingdom, and Italy, with no findings of wrongdoing against the companies involved.
However, delays by the Nigerian government in converting the licence into an OML later triggered arbitration proceedings at the International Centre for Settlement of Investment Disputes. The AGF warned that Nigeria faced potential liabilities exceeding $2 billion over the dispute.
Fagbemi emphasised that the arbitration, which began in 2020, was strictly limited to treaty obligations between Nigeria and foreign investors, and did not concern ownership disputes within Malabu. He added that none of the parties now raising objections participated in the proceedings.
Highlighting the strategic importance of the asset, he described OPL 245 as one of Nigeria’s most commercially viable offshore oil blocks, located about 150 kilometres off the coast, but left undeveloped for decades due to legal and political wrangling.
He said the Tinubu administration’s intervention has now paved the way for its development, with projections indicating output of about 150,000 barrels per day, alongside significant gas export potential tied to Nigeria LNG.
The AGF further cited a recent Court of Appeal decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge to the allocation, ruling it statute-barred and an abuse of court process.
Fagbemi argued that continued opposition to the resolution, despite legal clarity and economic benefits, suggested ulterior motives.
“Such narratives are designed to frustrate a lawful and strategic resolution capable of unlocking immense value for Nigerians,” he said, warning that attempts to derail the process could undermine national economic interests.
He urged the public to disregard what he described as misleading claims and support efforts aimed at unlocking the full potential of the country’s oil assets.
