Justice Minister Fagbemi Hails OPL 245 Peace Deal As A Decisive Step Forward For Nigeria
The Attorney-General of the Federation and Minister of Justice, Lateef Olayemi Fagbemi, has defended the federal government’s resolution of the long-running disputes surrounding the OPL 245 oil block, describing it as a landmark achievement with far-reaching economic and legal benefits for Nigeria.
In a press statement issued on March 25, 2026, Fagbemi faulted criticisms linked to the media office of former Vice-President Atiku Abubakar, accusing detractors of misrepresenting the facts and pursuing “selfish and not patriotic interests.”
“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,” the statement read.
The OPL 245 saga dates back to 1998 when the oil block was awarded to Malabu Oil & Gas Ltd, before its revocation in 2001 and subsequent reallocation to Shell Nigeria Ultra-Deep Limited in 2002—moves that triggered years of litigation and legislative scrutiny.
According to the AGF, the disputes were addressed through a 2011 Resolution Agreement involving the federal government, Malabu, and oil majors including Shell and Eni-linked entities.
He noted that “Malabu relinquished all claims and interests in OPL 245 for valuable consideration,” while the block was reallocated to new joint license holders.
Fagbemi stressed that the agreement and its underlying transactions had undergone “rigorous judicial scrutiny in multiple criminal and civil proceedings across jurisdictions, including the United States, the United Kingdom, and Italy,” with no wrongdoing established against the companies involved.
The Attorney-General further revealed that Nigeria later faced significant financial exposure due to delays in converting the asset into an Oil Mining Lease, prompting arbitration at the International Centre for Settlement of Investment Disputes (ICSID). The country, he said, risked liabilities exceeding $2 billion.
“The arbitration… focused strictly on whether Nigeria had wrongfully delayed or refused the conversion of OPL 245 into an OML,” he explained, adding that none of the current claimants to Malabu interests participated in the proceedings or had “a legal basis to intervene.”
Fagbemi described the Tinubu administration’s intervention as decisive, noting that it resolved longstanding disputes that had stalled development of one of Nigeria’s most valuable offshore assets.
“It is also important to highlight that OPL 245… has long been regarded as one of the country’s most commercially promising hydrocarbon assets,” he said, adding that the block had remained “largely undeveloped due to persistent legal and political disputes.”
He disclosed that the asset is projected to contribute about 150,000 barrels per day to Nigeria’s oil output and is tied to major gas export infrastructure linked to Nigeria LNG.
“The present resolution… transforms it into a viable and bankable development opportunity capable of delivering substantial economic and social benefits, including increased government revenue, enhanced energy security, and renewed investor confidence,” the statement noted.
Citing recent judicial backing, the AGF pointed to the Court of Appeal decision in Nigerian Agip Exploration Limited v. Malabu Oil & Gas Ltd (2025), which dismissed Malabu’s challenge as “statute-barred and constituted an abuse of court process.”
Fagbemi argued that continued opposition to the settlement raises serious concerns about motive.
“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 said.
He warned that such narratives risk undermining national progress, adding that they represent “an attempt to frustrate a lawful and strategic resolution that stands to unlock immense value for the Nigerian people.”
“Their posture is not only misleading but ultimately inimical to the collective interest,” he added, urging Nigerians to “reject efforts aimed at derailing progress for narrow personal or political gain.”
The AGF concluded that the resolution of OPL 245 marks a turning point in unlocking a critical national asset, insisting that “the national interest must not be sacrificed on the altar of a hidden agenda.”
Source: SocietyNow
