OPL 245: Critics pursuing self-interest, not patriotism — FG
The federal government has accused critics of the recent resolution of the long-running OPL 245 oil block dispute of pursuing selfish interests rather than acting in Nigeria’s national interest.
In a press statement issued on Wednesday, the Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), said comments attributed to the media office of former Vice-President Atiku Abubakar misrepresented what he described as a landmark achievement by the current administration in resolving a dispute that has lasted nearly 30 years.
The Attorney-General explained that OPL 245 was originally awarded to Malabu Oil & Gas Limited in 1998 before it was revoked in 2001 and later allocated to Shell Nigeria Ultra-Deep Limited in 2002, developments that triggered years of litigation and investigations.
According to him, the disputes were eventually addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell Nigeria Ultra-Deep Limited (now Shell Nigeria Exploration and Production Company Limited), and Nigerian Agip Exploration/Eni entities. Under the agreement, Malabu gave up all claims to the oil block in exchange for compensation, while the Federal Government reallocated the asset to Shell and Agip as joint licence holders.
Fagbemi noted that the agreement and related transactions were later subjected to criminal and civil proceedings in multiple jurisdictions, including the United States, the United Kingdom and Italy, with no wrongdoing established against the companies involved or the transaction itself.
He further disclosed that following delays by Nigeria in converting the oil prospecting licence into an oil mining lease as required by the agreement, Eni entities and Nigerian Agip Exploration Limited initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID), exposing the country to potential liabilities exceeding $2 billion.
The minister clarified that the arbitration, which began in 2020, focused strictly on whether Nigeria breached its treaty obligations to foreign investors and did not involve disputes over Malabu’s ownership.
He described OPL 245, located about 150 kilometres offshore, as one of Nigeria’s most commercially viable hydrocarbon assets that remained undeveloped for decades due to legal and political disputes.
