Federal Government Defends OPL 245 Deal as Landmark Settlement, Rebuts Atiku's Criticism
The Federal Government has firmly rebuffed criticisms from the camp of former Vice-President Atiku Abubakar regarding the resolution of the controversial OPL 245 oil block dispute. In a strong statement issued on Wednesday, the government described its intervention as a decisive move that has saved Nigeria from potential liabilities exceeding $2 billion while unlocking a major dormant asset for national development.
Attorney-General Addresses Misrepresentations
Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, accused Atiku's media office of misrepresenting facts surrounding the long-running dispute. Fagbemi insisted that the Tinubu administration's actions represent a "landmark achievement" after nearly three decades of legal and commercial uncertainty that had plagued the valuable oil asset.
"The national interest must not be sacrificed on the altar of hidden agendas," Fagbemi declared, warning that continued opposition to the resolution suggests "self-serving interests" rather than genuine concern for Nigeria's development.
Historical Context of OPL 245 Dispute
The Attorney-General traced the complex history of the dispute back to 1998 when OPL 245 was initially awarded to Malabu Oil & Gas. Following its revocation in 2001 and subsequent allocation to Shell Nigeria Ultra-Deep Limited in 2002, the situation triggered:
- Protracted litigation across multiple jurisdictions
- Extensive legislative probes and investigations
- Years of commercial uncertainty
A 2011 Resolution Agreement involving the Federal Government, Malabu, Shell entities, and Eni interests led to Malabu relinquishing its claims in exchange for compensation, while the oil block was reallocated to Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Nigerian Agip Exploration (NAE).
International Scrutiny and Arbitration Proceedings
According to Fagbemi, the agreement and subsequent transactions underwent extensive judicial scrutiny across multiple jurisdictions including the United States, United Kingdom, and Italy, with no findings of wrongdoing against the oil companies or the deal itself.
The Attorney-General disclosed that Nigeria faced arbitration at the International Centre for Settlement of Investment Disputes (ICSID) after Eni entities alleged that delays in converting OPL 245 into an Oil Mining Lease breached the Nigeria-Netherlands Bilateral Investment Treaty.
"The arbitration, which began in 2020, exposed Nigeria to potential damages exceeding $2 billion," Fagbemi clarified, emphasizing that the dispute was strictly about sovereign obligations and not ownership claims involving Malabu.
Legal Standing and Recent Court Rulings
Fagbemi noted that "none of the parties now making claims or referenced by the former Vice-President participated in the arbitration proceedings," adding that they lacked legal standing in the matter.
The Attorney-General cited a recent Court of Appeal ruling in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu's claims as statute-barred and an abuse of court process. This ruling reinforces the legality of the current arrangement and strengthens the government's position.
Economic Significance of OPL 245
Fagbemi described OPL 245, located approximately 150 kilometres offshore, as one of Nigeria's most commercially viable oil blocks. The asset is projected to produce about 150,000 barrels per day upon full development, representing significant potential for:
- Increased oil production capacity
- Improved national energy security
- Enhanced investor confidence in Nigeria's energy sector
The Attorney-General emphasized that the Tinubu administration's intervention not only resolves longstanding disputes but also paves the way for substantial economic benefits that could impact over 200 million Nigerian citizens.
Call for National Unity and Progress
Fagbemi urged Nigerians to reject what he described as attempts to derail progress, insisting that the resolution of OPL 245 represents a critical step toward unlocking economic benefits for the nation. He framed the settlement as essential for Nigeria's economic stability and future growth prospects in the competitive global energy market.
The Federal Government's comprehensive defense of the OPL 245 deal highlights the complex interplay between energy policy, international arbitration, and political discourse in Nigeria's ongoing development narrative.
