Malabu Oil and Gas Challenges Federal Government Over OPL 245 Settlement
Malabu Oil and Gas Limited has firmly rejected the Federal Government's assertion that the long-standing dispute over OPL 245 has been resolved, issuing a stern warning that it will pursue legal action to prevent the implementation of any agreement reached without its involvement. In a pre-action notice dated March 17, 2026, and directed at the Nigerian Upstream Petroleum Regulatory Commission, the company emphasized that no arrangement concerning the oil block should be recognized or enforced while multiple lawsuits remain active in Nigerian courts.
Exclusion from Negotiations Sparks Legal Threat
The notice, signed by Malabu's counsel, R. O. Atabo (SAN), highlighted that the company was completely excluded from all negotiations leading to the purported settlement. "The company was neither consulted nor involved in any negotiation, mediation or settlement process leading to the agreement recently celebrated by government officials," it stated. This stance directly contradicts the position of the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, who had hailed the OPL 245 resolution as a significant breakthrough for Nigeria's oil sector.
Malabu insists that its legal and equitable interests in OPL 245 remain valid and are currently under litigation in several pending cases before the Supreme Court and the Federal High Court in Abuja. These cases involve disputes with Nigeria Agip Exploration Limited and Shell Nigeria Exploration and Production Company Limited. Additionally, the company has filed a separate suit challenging what it describes as the wrongful removal of its name from the Corporate Affairs Commission's register.
Demands for Court Intervention and Damages
Rejecting reports of a settlement involving the Federal Government, Agip, and Shell, Malabu maintained that it did not participate in or approve any such agreement. "The majority shareholders and directors of the company were never consulted, invited to participate, or gave consent to any purported settlement," the notice added. The company plans to approach the Federal High Court to challenge the legality and validity of the so-called OPL 245 Resolution Agreement, including any restructuring or reallocation of interests in the oil block.
Malabu is seeking court declarations to affirm that its rights over OPL 245 remain intact and cannot be extinguished by any agreement to which it is not a party. The firm also requests the court to nullify the alleged agreement, halt any regulatory actions arising from it, and restrain all parties from conducting petroleum operations in the disputed asset. Furthermore, the company is demanding N1 trillion in damages, citing what it describes as trespass on its interests.
Ultimatum Issued to Regulatory Commission
Malabu has given the Nigerian Upstream Petroleum Regulatory Commission a 30-day ultimatum to refrain from implementing the agreement, warning that it will proceed to court if its demands are ignored. This move comes after the Federal Government earlier announced a resolution of the protracted OPL 245 dispute, portraying it as a landmark development for Nigeria's oil industry. The escalating legal battle underscores the ongoing tensions and complexities in Nigeria's energy sector, with significant financial and operational implications at stake.
