Attorney-General of the Federation (AGF) and Minister of Justice Lateef Fagbemi has defended the Federal Government’s resolution of the OPL 245 oil block dispute.
In a statement on Wednesday, AGF Fagbemi said criticisms of the move were misleading and driven by self-interest. He was reacting to reports linked to the media office of Atiku Abubakar.
Fagbemi said the resolution addressed a dispute that lasted for years and should not be downplayed.
He explained that OPL 245 was awarded to Malabu Oil & Gas Ltd in April 1998, revoked in July 2001 and later allocated to Shell Nigeria Ultra-Deep Limited in May 2002, leading to legal disputes and hearings.
He said the issues were addressed through a 2011 resolution agreement involving the Federal Government, Malabu, Shell Nigeria Ultra-Deep Limited, now succeeded by Shell Nigeria Exploration and Production Company Limited and Nigerian Agip Exploration.
According to him, Malabu gave up its claims to the oil block, while the Federal Government reallocated it to Shell and Nigerian Agip as joint licence holders, with a condition to convert it into an oil mining lease.
Fagbemi said the transactions were reviewed in courts in the United States, the United Kingdom and Italy, which did not establish wrongdoing against the companies or the deal.
He added that delays in converting the block led to arbitration at the International Centre for Settlement of Investment Disputes, where Nigeria faced possible liabilities of over $2 billion.
“The arbitration was not concerned with questions of ownership of Malabu or internal disputes within the company,” he said.
He also said individuals claiming an interest in Malabu did not take part in the arbitration and had no legal basis to intervene.
Fagbemi said the oil block, located offshore, has remained undeveloped due to disputes.
He said the resolution was aimed at resolving the issues, reducing financial risk and enabling development of the asset.
According to him, the block is projected to add about 150,000 barrels per day to Nigeria’s oil production and is linked to gas export projects.
He said the development would increase government revenue and support energy supply.
Lateef Fagbemi also referred to a Court of Appeal decision in 2025, which dismissed Malabu’s challenge to the allocation of the oil block, ruling that the case was filed outside the allowed time.
On criticisms of the settlement, he said, “The persistence of these criticisms strongly suggests that they are driven not by patriotism or objective reasoning, but by undisclosed and self-serving interests.”
He added that such claims were attempts to frustrate the resolution and urged Nigerians to view them with caution.
“The national interest must not be sacrificed on the altar of a hidden agenda,” he said.
Earlier, Atiku had said the OPL 245 dispute had not been resolved. He said the matter was still before the courts and cited a pre-action notice by Malabu as evidence.
“Contrary to official pronouncements, it is clear that the matter is far from resolved and remains the subject of multiple subsisting legal proceedings,” he said.
He added that cases related to the oil block were still before the Supreme Court and the Federal High Court and said Malabu was not involved in any settlement process.
