AGF Lateef Fagbemi defends FG’s settlement of OPL 245 dispute, describing criticisms as misleading and driven by self-interest, highlighting economic benefits
The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi (SAN), has defended the Federal Government’s settlement of the long-standing OPL 245 oil block dispute, dismissing criticisms as misleading and self-serving.
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Fagbemi responded to reports attributed to the Atiku Abubakar Media Office, which he said misrepresented the resolution of the nearly three-decade-old dispute.
He explained that OPL 245, awarded to Malabu Oil & Gas Ltd in 1998, revoked in 2001, and later allocated to Shell Nigeria Ultra-Deep Limited in 2002, triggered extensive litigation and public hearings.
The dispute was ultimately addressed through the 2011 Resolution Agreement involving the Federal Government, Malabu, SNEPCo, and Nigerian Agip Exploration/Eni entities.
Under the agreement, Malabu relinquished its claims in exchange for compensation, while the Federal Government reallocated the block to SNEPCo and Nigerian Agip Exploration as joint licence holders.
Fagbemi highlighted that delays in converting the block into an Oil Mining Lease (OML) led to arbitration at the ICSID, where Nigeria faced potential liabilities exceeding $2 billion.
The arbitration focused on treaty obligations, not ownership disputes within Malabu.
The AGF stressed that the resolution will enable OPL 245, one of Nigeria’s most promising offshore blocks, to contribute an estimated 150,000 barrels per day to production.
It is designed with a floating production system and gas export components linked to Nigeria LNG, promising economic, energy, and social benefits.
Citing the Court of Appeal decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), Fagbemi noted that Malabu’s challenge to the allocation was dismissed as statute-barred and an abuse of court process.
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He concluded that ongoing criticisms are not patriotic or objective but driven by undisclosed interests, urging Nigerians to support the resolution for national benefit.
