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By Correspondent in Abuja.
Malabu Oil & Gas Limited has threatened to institute legal proceedings against the Federal Government and six other entities over the March 5 resolution of the long-running Oil Prospecting Licence (OPL) 245 dispute involving ENI and Nigerian Agip Exploration Limited (NAEL).
The company, through its legal team led by Reuben Atabo, SAN, alleged that its directors and majority shareholders were neither consulted nor involved in any negotiations or settlement processes leading to the agreement.
In a pre-action notice issued pursuant to the Petroleum Industry Act (PIA), 2021, and addressed to the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Malabu warned of imminent legal action. The letter, dated March 17 and acknowledged by the commission on March 18, was made available to journalists in Abuja on Thursday.
Titled “Re: Intended Suit at the Federal High Court (FHC) Concerning any Purported Regulatory Action, Approval or Recognition of Arrangements Relating to OPL 245,” the notice reaffirmed Malabu’s longstanding legal and equitable interests in the oil block, noting that these remain the subject of ongoing litigation in Nigerian courts.
Atabo stated that the company’s attention was drawn to reports suggesting that a settlement or restructuring arrangement had been concluded among the Federal Government, NAEL, and Shell Nigeria Exploration and Production Company Limited.
He, however, maintained that Malabu was excluded from the process.
“The majority shareholders and directors of Malabu Oil and Gas Limited were never consulted. Our client was not invited to participate in any negotiation, mediation or settlement process, and no consent or approval was obtained,” he said.
Malabu is seeking to challenge the legality and validity of the agreement at the Federal High Court in Abuja, particularly the restructuring and reallocation of interests in OPL 245, as well as any regulatory recognition or implementation of the arrangement.
The proposed suit lists the Federal Republic of Nigeria, the Attorney-General of the Federation (AGF), the Minister of Petroleum Resources, and Shell Nigeria Ultra-Deep Limited as 1st to 4th defendants. Others are Shell Nigeria Exploration and Production Company Limited, NAEL, and the Nigerian National Petroleum Company Limited (NNPCL) as 5th to 7th defendants.
Among the reliefs sought are a declaration affirming Malabu’s subsisting rights in OPL 245 as of March 5, 2026; nullification of the disputed resolution agreement said to have split the oil block into four assets; and damages amounting to N1 trillion for alleged trespass on its proprietary rights.
The company is also seeking an injunction restraining the NUPRC from recognising or implementing the agreement, as well as setting aside any regulatory approvals already granted.
Malabu warned that if its concerns are not addressed within 30 days, it will proceed with the suit without further notice.
In a separate letter addressed to the Attorney-General of the Federation and Minister of Justice, Atabo called for urgent intervention, referencing earlier correspondence dating back to November 30, 2023, in which the ministry was notified of existing disputes over shareholding and ownership interests in OPL 245.
He recalled that the AGF had, in a response dated January 17, 2024, advised parties to resolve the matter privately due to its sub judice status. However, the lawyer expressed concern over the recent resolution involving the Federal Government, ENI, and NAEL, despite ongoing court cases.
“Our clients were neither consulted nor involved in any negotiation leading to the announcement. They did not participate in any discussions and have not given consent to any agreement purportedly resolving disputes concerning OPL 245,” he said.
Atabo emphasised that multiple legal proceedings concerning OPL 245 remain pending in courts across Nigeria, including cases involving Shell and NAEL.
While reaffirming Malabu’s commitment to a peaceful and lawful resolution, he stressed that the company would not allow its legal and proprietary interests to be compromised without due process and proper consultation.
Edited by Dada Ahmed.
