News
FG: Critics of OPL 245 Settlement Pursuing Self-Serving Interests — AGF Fagbemi
The Federal Government has defended the recent resolution of the long-standing dispute over OPL 245, describing criticisms from opposition figures as driven by selfish rather than patriotic motives.
In a press statement issued on Wednesday, the Attorney-General of the Federation and Minister of Justice, Lateef Olatunji Fagbemi, faulted comments attributed to the media office of former Vice-President Atiku Abubakar, accusing them of misrepresenting the facts surrounding the settlement.
Fagbemi said the resolution of the OPL 245 dispute marks a “landmark achievement” by the administration of President Bola Ahmed Tinubu, noting that the controversy had lingered for nearly three decades.
The oil block, originally awarded to Malabu Oil & Gas Ltd in 1998, was revoked in 2001 and later reallocated in 2002 to Shell Nigeria Ultra-Deep Limited. These developments triggered prolonged legal battles and legislative scrutiny.
According to the Attorney-General, the disputes were addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell entities, and Nigerian Agip Exploration/Eni. Under the agreement, Malabu relinquished its claims to the oil block, paving the way for its reallocation and eventual development.
Fagbemi further explained that subsequent legal challenges in multiple jurisdictions, including the United States, the United Kingdom, and Italy, did not establish wrongdoing against the companies involved or the transaction itself.
He revealed that following delays by Nigeria in converting OPL 245 into an Oil Mining Lease, Eni entities initiated arbitration proceedings against the country at the International Centre for Settlement of Investment Disputes (ICSID), citing a breach of obligations under the Nigeria–Netherlands Bilateral Investment Treaty.
The arbitration, which began in 2020, exposed Nigeria to potential liabilities exceeding $2 billion. However, the Attorney-General stressed that the proceedings focused strictly on treaty obligations and not on ownership disputes related to Malabu.
Highlighting the economic significance of the oil block, Fagbemi described OPL 245 as one of Nigeria’s most commercially viable offshore assets, located about 150 kilometres from the coastline. He noted that its prolonged underdevelopment was due to persistent legal and political disputes.
He said the Tinubu administration’s intervention is aimed at unlocking the asset’s full potential, with projections indicating it could contribute about 150,000 barrels per day to Nigeria’s oil production capacity.
“The present resolution transforms OPL 245 into a viable and bankable development opportunity capable of delivering significant economic and social benefits,” the statement said, citing increased government revenue, improved energy security, and renewed investor confidence.
Fagbemi also referenced a recent Court of Appeal ruling in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge to the allocation of the oil block, describing the action as statute-barred and an abuse of court process.
The Attorney-General concluded that continued opposition to the settlement raises concerns about underlying motives.
“The persistence of these criticisms… strongly suggests that they are driven not by patriotism or objective reasoning, but by undisclosed and self-serving interests,” he said.
He urged Nigerians to disregard what he described as attempts to frustrate a lawful resolution capable of delivering broad national benefits.
Follow BONA NAIJA for more
