‎AGF Defends OPL 245 Settlement, Says Critics Pursuing Self-Serving Interests

‎The Attorney-General of the Federation (AGF) and Minister of Justice, Lateef O. Fagbemi, has defended the Federal Government’s recent resolution of the long-running dispute over OPL 245, describing opposition to the settlement as driven by selfish rather than patriotic motives.

‎In a press statement issued on March 25, 2026, the AGF faulted media reports attributed to the media office of former Vice-President Atiku Abubakar, which he said misrepresented the significance of the resolution.

‎Fagbemi described the settlement as a landmark achievement of the administration of President Bola Tinubu, noting that it brings to a close a dispute that has lingered for nearly three decades.

‎The oil block, OPL 245, was originally awarded to Malabu Oil & Gas Limited in April 1998. It was later revoked in July 2001 and reallocated in May 2002 to Shell Nigeria Ultra-Deep Limited (SNUD), now succeeded by Shell Nigeria Exploration and Production Company Limited (SNEPCo), alongside Nigerian Agip Exploration (NAE).

‎These developments triggered extensive litigation and public hearings before the National Assembly.

‎In 2011, the dispute was addressed through a Resolution Agreement involving the Federal Government of Nigeria (FGN), Malabu, SNUD (SNEPCo), and NAE/Eni entities. Under the agreement, Malabu relinquished all claims to the oil block in exchange for consideration, while the Federal Government reallocated OPL 245 to SNUD and NAE as joint license holders, with a commitment to convert it into an Oil Mining Lease (OML).

‎The AGF noted that transactions arising from the 2011 agreement were subjected to judicial scrutiny in multiple jurisdictions, including the United States, the United Kingdom, and Italy. According to him, those proceedings did not establish wrongdoing against Eni, SNEPCo, or the transaction as a whole.

‎Following delays in converting OPL 245 into an OML, Eni entities and Nigerian Agip Exploration Limited initiated arbitration proceedings against Nigeria at the International Centre for Settlement of Investment Disputes (ICSID) in 2020.

‎They argued that the delay breached Nigeria’s obligations under the Nigeria–Netherlands Bilateral Investment Treaty, exposing the country to potential liabilities exceeding $2 billion in damages and costs.

‎Fagbemi clarified that the arbitration was strictly focused on whether Nigeria had wrongfully delayed the conversion of the oil block and whether such actions violated treaty obligations. He stressed that the proceedings were not concerned with ownership disputes within Malabu and that individuals now claiming interests in the company neither participated in nor had legal grounds to intervene in the ICSID process.

‎Located about 150 kilometres offshore in deep waters, OPL 245 is widely regarded as one of Nigeria’s most commercially promising hydrocarbon assets. However, it has remained largely undeveloped due to persistent legal and political disputes.

‎The AGF said the Tinubu administration’s intervention was aimed at resolving these issues, reducing Nigeria’s financial exposure, and paving the way for full development of the asset.

‎He disclosed that OPL 245 is projected to add approximately 150,000 barrels per day to Nigeria’s oil production capacity. The development plan includes a large-scale floating production system and significant gas export components linked to Nigeria LNG.

‎“For decades, OPL 245 symbolized unrealized national potential,” Fagbemi said, adding that the resolution transforms it into a viable and bankable development opportunity capable of boosting government revenue, enhancing energy security, and restoring investor confidence.

‎The AGF also cited the decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025) 15 NWLR (Pt 2009) 551, in which the Court of Appeal dismissed Malabu’s challenge to the allocation of OPL 245 to SNEPCo, ruling that the action was statute-barred and constituted an abuse of court process.

‎Fagbemi maintained that continued opposition to the settlement, despite what he described as clear legal and commercial justification, raises serious concerns.

‎He argued that such criticism appears aimed at frustrating a lawful and strategic resolution that stands to unlock significant economic value for Nigeria’s over 200 million citizens.

‎“Nigerians should approach such narratives with caution and reject attempts to derail progress for narrow personal or political gain,” he said.

‎The AGF insisted that the national interest must not be sacrificed for what he termed hidden agendas, emphasizing that the government remains committed to safeguarding Nigeria’s economic future and maximizing the value of its strategic assets.