The Attorney General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi, has dismissed claims by former Vice President Atiku Abubakar that disputes surrounding the controversial OPL 245 oil block remain unresolved.
Atiku had earlier challenged the Federal Government’s position, arguing that the matter was still before the courts and citing a pre-action notice issued by Malabu Oil & Gas Ltd as evidence of ongoing legal contention. He also warned that sidelining key stakeholders could raise serious due process concerns, noting that related cases are pending before the courts.
However, Fagbemi, in a statement issued on Wednesday, urged Nigerians to disregard what he described as a “misrepresentation of facts,” questioning the motive behind Atiku’s position.
The AGF maintained that the current administration has achieved a landmark resolution of the decades-long dispute, which dates back to the initial award of the oil block to Malabu in 1998. The licence was later revoked in 2001 and reallocated in 2002 to Shell Nigeria Ultra-Deep Limited, now known as Shell Nigeria Exploration and Production Company Limited, triggering years of litigation and public scrutiny.
According to Fagbemi, the matter was effectively settled under a 2011 Resolution Agreement involving the Federal Government, Malabu, SNEPCo, and Nigerian Agip Exploration Limited, a subsidiary of Eni. Under the deal, Malabu relinquished its claims in exchange for compensation, while the oil block was reassigned to SNEPCo and NAE as joint licence holders.
He further noted that the transactions underwent extensive judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom, and Italy, with no wrongdoing established against the companies involved.
Addressing subsequent arbitration proceedings, Fagbemi explained that Eni and its Nigerian affiliate initiated a case against Nigeria at the International Centre for Settlement of Investment Disputes over delays in converting the licence into an Oil Mining Lease. He clarified that the arbitration, which began in 2020, focused solely on treaty obligations and did not revisit ownership disputes involving Malabu.
Nigeria, he said, faced potential liabilities exceeding $2 billion before the intervention of the current administration to resolve the impasse.
Fagbemi described OPL 245, located about 150 kilometres offshore, as one of Nigeria’s most valuable hydrocarbon assets, long hindered by legal and political disputes. He said the resolution would pave the way for its development, with projections to boost Nigeria’s output by about 150,000 barrels per day and support gas exports linked to Nigeria LNG.
He also referenced a 2025 Court of Appeal judgment in favour of Nigerian Agip Exploration Limited, which dismissed Malabu’s challenge as statute-barred and an abuse of court process.
The AGF warned that continued opposition to the resolution was “misleading” and contrary to national interest, suggesting that such criticisms may be driven by undisclosed interests rather than objective reasoning.
He called on Nigerians to support what he described as a lawful and strategic move to unlock significant economic value for the country.
