Juliet Ezeh
The long-running dispute over Nigeria’s lucrative OPL 245 oil block has taken a new turn as Malabu Oil and Gas Limited moves to challenge the Federal Government’s recent settlement, demanding ₦1 trillion in damages.
In a pre-action notice addressed to the Nigerian Upstream Petroleum Regulatory Commission, the company warned authorities against taking any steps to implement the reported agreement, citing ongoing court cases over the asset.
Malabu argued that any attempt to enforce the settlement would amount to a violation of its rights, which it insists remain valid and legally protected.
The firm maintained that it was excluded from all negotiations leading to the agreement announced by the government, distancing itself from the deal involving major industry players.
“Our legal and equitable interests remain active and are still subject to judicial determination,” the company stated.
The dispute centers on OPL 245, one of Nigeria’s most valuable offshore oil blocks, which has been entangled in litigation spanning over two decades.
Malabu disclosed that several cases linked to the oil block are still pending before Nigerian courts, including matters at the Supreme Court and the Federal High Court in Abuja.
In addition to contesting the settlement, the company revealed plans to file a fresh suit seeking to nullify the agreement and halt any operational activities tied to it.
It is also requesting the court to restrain all parties involved from proceeding with exploration or production activities in the disputed block.
The Federal Government, however, had earlier presented the resolution as a major breakthrough for the oil sector.
The Attorney-General of the Federation, Lateef Fagbemi, said the agreement would end years of legal uncertainty and strengthen Nigeria’s economic outlook.
According to him, the deal—reached with companies including Eni and Nigeria Agip Exploration Limited—would improve government revenue and investor confidence.
Despite these claims, Malabu has given regulators a 30-day ultimatum to suspend any action on the agreement or face legal consequences.
Industry observers say the latest development could prolong the already complex dispute, potentially delaying investment and production activities linked to the oil block.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.