OPL 245 Dispute Deepens As Malabu Files ₦1tn Suit Against FG

Malabu Oil & Gas Limited has instituted a fresh legal action against the Federal Government, challenging the recent conversion and division of the controversial Oil Prospecting Licence (OPL) 245 into multiple oil mining assets.

In the suit filed before the Federal High Court in Abuja, the company is seeking ₦1 trillion in damages over what it described as unlawful interference with its interests in the disputed oil block.

The suit, marked FHC/ABJ/CS/871/2026, lists President Bola Ahmed Tinubu, the Attorney-General of the Federation and the Minister of Petroleum Resources as first to third respondents respectively.

Malabu, through its counsel, Chief Reuben Atabo (SAN), argued that the Federal Government acted unlawfully by converting OPL 245 into OML 245 and subsequently splitting the asset while several legal disputes over the oil block were still pending before different courts, including the Supreme Court.

The company is specifically challenging the OPL 245 Resolution Agreement reportedly signed around March 5, through which the oil block was divided into four separate assets to be managed by Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Limited, Nigerian Agip Exploration Company Limited and NNPC Limited. Malabu is asking the court to declare the action illegal, null and void.

The company also seeks an order restraining the Federal Government and the oil firms from proceeding with any further activities connected to the disputed assets pending the determination of the suit.

In an affidavit filed in support of the application, shareholder and director of the company, Alhaji Mohammed Sani Abacha, outlined the history of the prolonged legal battles surrounding OPL 245. He argued that the Federal Government’s actions violated the provisions of the Petroleum Industry Act 2021 and unlawfully interfered with Malabu’s proprietary interests in the oil asset.

Justice Mohammed Umar had earlier granted leave to the company to apply for judicial review through declarations and injunctive reliefs against the Federal Government’s decision. The judge held that the ex-parte application filed by Malabu disclosed sufficient merit to warrant further judicial consideration.

The matter has now been fixed for hearing on June 11.

The latest lawsuit adds another chapter to the decades-long controversy surrounding OPL 245, one of Nigeria’s most valuable offshore oil assets.

The oil block has remained at the centre of multiple legal disputes, corruption investigations and international litigation involving Nigeria, Shell, Eni and other stakeholders across several jurisdictions.

The Tinubu administration had defended the restructuring of the oil block as part of efforts to finally resolve the disputes surrounding the asset and unlock production from one of Nigeria’s largest untapped offshore reserves.