President Bola Tinubu has issued a directive for the expeditious resolution of all court cases surrounding the $1.3 billion deepwater OML 245 oil block located in the southern Niger Delta. The order is aimed at bringing an end to the protracted legal disputes involving various government agencies, including the Attorney-General of the Federation, Lateef Fagbemi (SAN), Minister of State for Petroleum Resources, Heineken Lokpobiri, and others.
Lokpobiri disclosed this development during a briefing in Abuja on Wednesday, revealing that negotiations are underway to conclude the over 28-year crisis and litigations surrounding the highly productive oil block within the next month.
The OML 245 saga has been a complex and long-standing issue, marked by allegations of corruption, fraud, and extensive legal battles. The oil block, considered one of Nigeria’s most prolific, has been at the center of controversies dating back to 1998 when Malabu Oil and Gas, linked to former Nigerian Minister of Petroleum, Dan Etete, acquired it for $2 million.
In subsequent years, the Federal Government, under former President Olusegun Obasanjo, revoked Malabu’s license due to “questionable practices.” Legal battles ensued, and an out-of-court settlement was reached in 2006 under President Umaru Yar’Adua.
In 2011, Shell and Eni acquired OML 245 for $1.3 billion from Malabu in a deal approved by the Nigerian government. However, allegations of bribery and corruption emerged, leading to litigations involving Nigeria versus Eni and Shell.
Commenting on the issue, Minister Lokpobiri acknowledged the challenges faced by the previous administration in pursuing legal actions against Eni, Shell, and Malabu. He cited a significant penalty of over 70 million pounds imposed by the court, emphasizing the financial burden on Nigeria.
Lokpobiri outlined the government’s current approach, stating, “So we are talking to Eni and Shell, and saying let’s sit down and see how we can resolve all the problems. We have taken you to court on multiple occasions, you have also taken us to court, but let’s see how we can resolve these problems.”
The government’s initiative aims to harness the economic potential of the idle but prolific OML 245 oil block, emphasizing the need for a comprehensive resolution that benefits the nation’s economy.
