President Bola Tinubu has issued a directive to expedite the resolution of the prolonged legal battle surrounding the $1.3bn deepwater OML 245 oil block located in the southern Niger Delta.
The order involves the Attorney-General of the Federation, Lateef Fagbemi (SAN), Minister of State for Petroleum Resources, Heineken Lokpobiri, and several government agencies, including the Economic and Financial Crimes Commission, Nigerian Upstream Petroleum Regulatory Commission, and Nigerian National Petroleum Company Limited.
The Malabu OML 245 saga dates back to 1998 when Malabu Oil and Gas, linked to former Nigerian Minister of Petroleum, Dan Etete, acquired the block for $2 million.
Subsequent events, including license revocation, court challenges, and the involvement of major oil companies Shell and Eni in a $1.3bn deal, led to a web of allegations, litigations, and international disputes.
Minister Lokpobiri disclosed on Wednesday that negotiations are underway to settle the complex issues surrounding the oil block within the next month. This comes after over 28 years of crisis and legal battles, with allegations of corruption, fraud, and disputes involving Transparency International and other anti-corruption groups.
Lokpobiri highlighted the challenges faced by the previous administration, stating, “The previous administration initiated most of the cases that we are talking about today.” He emphasized the financial burden on Nigeria, revealing a penalty of over 70 million pounds imposed by a court in a case involving JP Morgan.
The current government aims to address the economic implications of the idle OML 245 block, considered one of Nigeria’s most prolific oil blocks. Negotiations with Eni and Shell are ongoing, seeking a resolution to the longstanding disputes that have marred the potential economic benefits of the oil block.
