Attorney-General of the Federation (AGF) and Minister of Justice, Lateef Fagbemi (SAN), has dismissed criticisms trailing the resolution of the long-running OPL 245 dispute, describing them as driven by “selfish” rather than patriotic motives.
In a statement issued on March 25, 2026, the AGF said his office was compelled to respond to media reports credited to the Atiku Abubakar Media Office, which he accused of misrepresenting facts surrounding the settlement.
According to him, the former Vice-President’s position seeks to undermine what he described as a major milestone by the current administration in resolving a dispute that has lingered for nearly 30 years.
“In that publication, the former Vice-President sought to downplay what is, by all objective standards, a landmark achievement of the current administration in brokering the settlement of a protracted dispute spanning nearly three decades.”
Long History of Disputes
Fagbemi traced the origins of the controversy to 1998, when the oil block was first awarded to Malabu Oil & Gas Limited. The block was later revoked in 2001 and reallocated in 2002 to Shell Nigeria Ultra-Deep Limited, triggering years of litigation and legislative scrutiny.
He explained that the disputes were eventually addressed through a 2011 Resolution Agreement involving the Federal Government, Malabu, Shell’s Nigerian subsidiary (now SNEPCo), and Nigerian Agip Exploration (NAE).
> “Under that Agreement, Malabu relinquished all claims and interests in OPL 245 for valuable consideration, while the Federal Government reallocated the block… as joint license holders.”
The AGF noted that the 2011 deal and related transactions were subjected to extensive legal scrutiny in multiple jurisdictions, including the United States, the United Kingdom, and Italy.
He stressed that none of the proceedings established wrongdoing against the companies involved or invalidated the transaction.
$2 Billion Risk Averted
Fagbemi further revealed that delays in converting OPL 245 into an Oil Mining Lease prompted arbitration proceedings at the International Centre for Settlement of Investment Disputes (ICSID).
The claimants argued that Nigeria had breached its obligations under a bilateral investment treaty with the Netherlands, exposing the country to liabilities exceeding $2 billion.
> “As a result, Nigeria faced a potential liability exceeding US$2 billion in damages and associated costs.”
He clarified that the arbitration strictly focused on Nigeria’s treaty obligations and licensing decisions, not ownership disputes involving Malabu.
Describing OPL 245 as one of Nigeria’s most valuable offshore assets, the AGF said its prolonged dormancy had denied the country significant economic benefits.
Located about 150 kilometres offshore, the block is projected to produce about 150,000 barrels of oil per day, alongside major gas export potential linked to Nigeria LNG.
> “For decades, OPL 245 symbolized unrealized national potential. The present resolution… transforms it into a viable and bankable development opportunity.”
He added that the development would boost government revenue, strengthen energy security, and restore investor confidence.
Fagbemi also cited a recent Court of Appeal judgment which dismissed Malabu’s challenge to the allocation of the oil block.
“The Court of Appeal dismissed Malabu’s challenge… holding that the action was statute-barred and constituted an abuse of court process.”
‘Opposition Not in National Interest’
The AGF maintained that continued opposition to the settlement raises serious concerns about the motives behind such criticisms.
“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 warned that attempts to derail the resolution could deny Nigerians the benefits of a critical national asset.
“Those advancing such narratives must be understood for what they represent—an attempt to frustrate a lawful and strategic resolution… Their posture is not only misleading but ultimately inimical to the collective interest.”
Fagbemi urged Nigerians to be wary of narratives aimed at undermining the agreement, insisting that national interest must prevail over political or personal agendas.
“The national interest must not be sacrificed on the altar of a hidden agenda.”