A faction of Malabu Oil & Gas Ltd has initiated legal action against the federal government, demanding N1 trillion in damages over the splitting of Oil Prospecting Licence (OPL) 245. The suit, filed by the company's lawyer Reuben Atabo, SAN, seeks to quash the government's conversion of OPL 245 to Oil Mining Licence (OML) 245.
The plaintiff is suing the President, the Attorney-General of the Federation (AGF), and the Minister of Petroleum Resources. The company argues that the conversion of OPL 245 to OML 245 occurred while several court cases were pending, including at the Supreme Court.
Malabu seeks a declaration that the splitting of OPL 245 into four assets—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. The company also seeks N1 trillion in damages for unlawful interference with its interests in OPL 245 and for actions exceeding the limits of the Petroleum Industry Act 2021.
The judge, Mohammed Umar of the Federal High Court in Abuja, has set June 11 for the hearing. This legal challenge follows a recent court decision on May 22, where Malabu was granted leave to apply for a judicial review concerning the OPL 245 split.
The dispute arises less than two months after President Bola Tinubu announced a settlement for the decades-long dispute over OPL 245, which was expected to boost Nigeria's production capacity by approximately 150,000 barrels per day.
OPL 245 was initially awarded to Malabu Oil and Gas in 1998. The block has a complex history involving multiple government administrations, legal battles, and settlement attempts, including a significant payment of $1.092 billion to Malabu in 2011 under the Goodluck Jonathan administration.
Niger State Seeks Private Sector Investment in Bida Basin
In a separate development, the Niger State Government has appealed to the Dangote Group and other private sector investors to explore crude oil exploration opportunities in the Bida Basin. This appeal was made during the Niger National Trade Fair, which ran from May 13 to May 23.
The state government, through its Commissioner for Trade, Investment, Industry and Private Sector Development, Aminu Takuma, is partnering with private sector operators under a One-Stop-Shop investment model to develop the Bida Basin's crude oil potential. The state intends to hold a minimal stake through a Joint Venture-Public Private Partnership (JV-PPP) arrangement.
Mr. Takuma commended the Dangote Group for its industrialisation efforts, including the construction of the Dangote Refinery. Fatima Abdurrahman, Regional Director and Senior Adviser to Aliko Dangote, stated that the Dangote Group is a natural partner for Niger State, citing existing investments in rice processing.
The Dangote Group, a major sponsor of the trade fair, has been expanding its oil and gas exploration interests. The company recently announced its first oil production from upstream assets and is preparing to pump marketable crude for its refinery. Dangote Petroleum Refinery is currently producing about 4,500 barrels per day from the Kalaekule field on OML 72, with projections to increase to 15,000 barrels per day within weeks.
