By Peter Omopo
Nigeria’s Attorney-General and Minister of Justice, Lateef Fagbemi, has defended the Federal Government’s resolution of the long-standing OPL 245 oil block dispute, describing it as a major milestone and accusing critics, including allies of former Vice-President Atiku Abubakar, of acting in self-interest.
In a statement issued on Wednesday, Fagbemi said the settlement brings an end to nearly three decades of legal and commercial uncertainty surrounding the offshore oil asset.
He criticised comments attributed to Atiku’s media office, which questioned the resolution, insisting that the agreement was in Nigeria’s best interest.
The OPL 245 oil block was originally awarded to Malabu Oil and Gas in 1998, before being revoked in 2001 and reallocated in 2002, leading to prolonged legal battles.
A 2011 agreement involving the Federal Government, Malabu, Shell, and Eni sought to resolve competing claims, with Malabu relinquishing its interest in exchange for compensation.
The dispute later resulted in multiple legal proceedings across jurisdictions in Europe and the United States, with no court establishing wrongdoing in the transaction.
It subsequently escalated to arbitration at the International Centre for Settlement of Investment Disputes, where Nigeria faced potential liabilities exceeding $2 billion over delays in converting the licence for production.
Fagbemi said the latest resolution would help Nigeria avoid significant financial exposure while enabling the development of the oil block.
He added that a 2025 Court of Appeal ruling, which dismissed Malabu’s claims as statute-barred, further strengthened the Federal Government’s position.
According to him, the project is expected to produce about 150,000 barrels of oil per day and support gas exports, thereby boosting government revenue and investor confidence.
The Attorney-General warned that continued opposition to the settlement could undermine economic progress, urging Nigerians to disregard what he described as misleading narratives aimed at frustrating a lawful and strategic national development initiative.
