By Daniel Oluwatobiloba Popoola
Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has faulted critics of the Federal Government’s resolution of the long-running OPL 245 oil block dispute, accusing them of pursuing selfish interests and attempting to frustrate what he described as a lawful settlement reached in the national interest.
Fagbemi stated this in a press statement issued on Wednesday,25 March 2026, while reacting to comments attributed to the Atiku Abubakar Media Office, which he said misrepresented the circumstances surrounding the resolution of the dispute linked to the oil block.
According to the Attorney-General, the remarks credited to the former Vice-President sought to downplay what he called a landmark achievement by the current administration in resolving a dispute that had lingered for nearly three decades and prevented the development of one of Nigeria’s most valuable hydrocarbon assets.
“The attention of the Attorney-General of the Federation and Minister of Justice has been drawn to media reports attributed to the Atiku Abubakar Media Office, which contain misrepresentations concerning the recent resolution of disputes associated with the OPL 245 oil block,” the statement read.
Fagbemi recalled that OPL 245 was originally awarded to Malabu Oil & Gas Limited in April 1998, revoked in July 2001, and subsequently allocated to Shell Nigeria Ultra-Deep Limited in May 2002, a development that triggered prolonged litigation and investigations, including public hearings before the National Assembly.
He explained that the disputes arising from the revocation and reallocation were later addressed through the 2011 Resolution Agreement involving the Federal Government of Nigeria, Malabu Oil & Gas Limited, Shell Nigeria Ultra-Deep Limited now Shell Nigeria Exploration and Production Company Limited (SNEPCo) and Nigerian Agip Exploration/Eni entities.
Under the agreement, Malabu relinquished all claims to the oil block for valuable consideration, while the Federal Government reallocated OPL 245 to SNEPCo and Nigerian Agip Exploration as joint licence holders, with a requirement that the block be converted into an Oil Mining Lease.
The minister further noted that the transactions arising from the 2011 agreement were subjected to extensive judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom and Italy, adding that the proceedings did not establish any wrongdoing against Eni, SNEPCo or the transaction itself.
He stated that, following the delay in converting OPL 245 into an Oil Mining Lease, Eni entities and Nigerian Agip Exploration Limited initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID).
According to him, the arbitration, which commenced in 2020, exposed Nigeria to potential liability exceeding two billion dollars, as the investors argued that the delay breached Nigeria’s obligations under the Nigeria–Netherlands Bilateral Investment Treaty.
Fagbemi clarified that the arbitration was not about ownership disputes within Malabu, but strictly concerned whether Nigeria wrongfully delayed the conversion of OPL 245 into an Oil Mining Lease and thereby violated its treaty obligations.
“At no point did the individuals now laying claim to interests in Malabu initiate proceedings in that forum, nor did they possess a legal basis to intervene in a dispute centred on sovereign obligations and licensing decisions,” he said.
He described OPL 245, located about 150 kilometres offshore, as one of Nigeria’s most commercially promising oil assets, which remained largely undeveloped for decades due to persistent legal and political disputes.
Consequently, he said the decision of the present administration was aimed at resolving the long-standing crisis, avoiding heavy financial exposure, and creating the conditions for the asset to be fully developed and brought into production.
“The significance of this development cannot be overstated. OPL 245 is projected to contribute approximately 150,000 barrels per day to Nigeria’s oil production capacity and includes substantial gas export components linked to Nigeria LNG,” he stated.
The Attorney-General added that the project, designed around a large floating production system, is expected to deliver major economic benefits, including increased government revenue, improved energy security and renewed investor confidence.
He also referred to a recent Court of Appeal decision in *Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025) 15 NWLR (Pt. 2009) 551*, which dismissed Malabu’s challenge to the allocation of the oil block to Shell Nigeria Exploration and Production Company Limited, holding that the action was statute-barred and an abuse of court process.
Fagbemi said the continued opposition to the settlement, despite legal clarity and commercial justification, was disturbing and suggested that those involved were motivated by personal interests rather than national interest.
“The persistence of these criticisms, despite clear legal, commercial and national interest considerations, 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 attempts to derail the resolution, warning that such actions could deprive the country of the economic benefits attached to the development of the oil block.
“The national interest must not be sacrificed on the altar of a hidden agenda,” the Attorney-General added.
