OPL 245: Malabu sues Tinubu over split of oil asset, demands ₦1trn in damages

By Taiye Agbaje

Malabu Oil & Gas Ltd has filed a N1 trillion suit against the Federal Government seeking an order quashing the conversion of Oil Prospecting Licence (OPL) 245 to OML 245 by the federal government.

Malabu Oil, in the suit filed by its lawyer, Reuben Atabo, SAN, before Justice Mohammed Umar of the Federal High Court in Abuja,

Malabu, the applicant, sued President Bola Tinubu, the Attorney-General of the Federation (AGF) and the Minister of Petroleum Resources as 1st to 3rd respondents respectively in the suit marked: FHC/ABJ/CS/871/2026.

In the notice of motion dated and filed on May 25 by Atabo, the company argued that the conversion of OPL 245 to OML 245 was done while a number of cases were pending at the Federal High Cout up to the Supreme Court.

It therefore sought a declaration that splitting OPL 245 into four assets to be managed by Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited through the OPL 245 Resolution Agreement signed around March 5, was unlawful.

In addition, Malabu seeks an order awarding ₦1 trillion in damages against the respondents jointly and severally.

The company said the fine was for unlawful interference with its interests in OPL 245 and for actions that exceed the limits of the Petroleum Industry Act 2021.

In an affidavit in support of the motion, a shareholder and director, Alhaji Mohammed Sani Abacha, detailed the company’s history and its prolonged legal battle over OPL 245.

The judge fixed June 11 for hearing of the matter.

Justice Umar had, on Thursday, granted leave to Malabu Oil & Gas Ltd to apply for a judicial review by way of declarations and injunctions against the executive action of the Federal Government in splitting OPL 245.

The judge, in a ruling, held that the motion ex-parte, moved by Atabo, in respect of the relief sought, was meritorious.

Recall that the Tinubu’s administration had broken up the controversial OPL 245 oil block into four new assets to be operated by Eni and Shell as part of the moves to end nearly three decades of legal and political disputes over the oil asset.

OOPL 245, a field widely regarded as one of Nigeria’s most prolific offshore assets has remained idle over lawsuits and investigations in Nigeria, Italy, and other countries.

According to Reuters, the breakup of 245 oil block into four new assets to be operated by Eni and Shell was expected to settle long-standing dispute surrounding OPL 245 and bring the asset into production.

OPL 245 was originally awarded in 1998 to Malabu Oil and Gas, a company linked to former Nigerian oil minister, Dan Etete.

However, the licence was later acquired by Shell and Eni in a deal valued at about $1.3bn.

However, the acquisition was trailed by allegations of corruption over alleged diversion of funds realized from the sale to politicians and intermediaries.

The allegations led to a lengthy trial in Italy involving the two oil majors and oil industry executives, including Eni’s Chief Executive Officer, Claudio Descalzi.

But an Italian court acquitted Eni, Shell, and the executives of all wrongdoing in 2021.

The Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi had led a federal government team to sign the settlement agreement with Eni and Nigerian Agip Exploration Limited (NAEL) following the breakup of the oil asset as a way of ending the protracted dispute March 2026.

The Attorney-General explained that the settlement, which will culminate in a Consent Arbitral Award, not only resolves a complex international dispute but also restores Nigeria’s credibility as a responsible partner in global business.

“This settlement sends a clear signal to the global community that Nigeria is open for business and committed to fairness and respect for contractual obligations,” Fagbemi had said.