The Attorney-General of the Federation, Lateef Fagbemi, has come to the defense of the federal government's handling of the OPL 245 dispute. Critics of the deal have been accused of misrepresenting a decades-long process of negotiations, litigation, and international arbitration. The agreement, according to Mr Fagbemi, has the potential to unlock up to 150,000 barrels per day from one of Nigeria's most strategic deep water oil assets.
The dispute over OPL 245 dates back to 1998, when the oil prospecting licence was first awarded to Malabu Oil and Gas Limited. The licence was revoked in 2001 and reassigned to Shell-linked interests in 2002. This move triggered years of litigation, regulatory reviews, and political interventions, ultimately leading to a series of settlements involving the Federal Government, Malabu, Shell-related entities, and Eni-linked companies.
The turning point in the dispute came in 2011, when the parties reached an agreement under which Malabu relinquished its interest in the block in exchange for compensation. Shell and Eni were granted rights to jointly operate the asset, with a plan to convert it into an Oil Mining Lease.
The Attorney-General's defense of the OPL 245 resolution raises more questions than answers. The deal's potential to unlock 150,000 barrels per day is significant, but at what cost to the nation? The dispute's history is replete with allegations of corruption and cronyism, and it is imperative that the government provides transparency on the terms of the agreement. Nigerians deserve to know how this deal will benefit them, and what measures are in place to prevent future disputes. The government's commitment to creating conditions for the asset to be fully developed and brought into production must be matched with concrete action and accountability.
