Malabu Oil and Gas Launches N1 Trillion Lawsuit Against Federal Government
A faction of Malabu Oil and Gas Company has initiated a N1 trillion lawsuit against the Federal Government concerning the contentious division of 245 Oil Exploration Licenses (OPL). In a suit filed through Senior Nigerian Counsel Reuben Atabo, the plaintiffs are requesting Justice Mohammed Umar of the Federal High Court in Abuja to nullify the government’s conversion of OPL 245 to OML 245.
Legal Action Against Government Officials
The suit, designated FHC/ABJ/CS/871/2026, targets the President, the Attorney General of the Federation, and the Minister of Petroleum Resources. According to Mr. Atabo’s notice of motion filed on May 25, the conversion of OPL 245 to OML 245 occurred amidst ongoing legal proceedings that have escalated from the Federal High Court all the way up to the Supreme Court.
Allegations of Unlawful Division of Assets
The company is seeking a judicial declaration that the division of OPL 245 into four assets—controlled by Shell Nigeria Ultradeep Limited, Shell Nigeria Exploration Production Company Limited, Nigeria Agip Exploration Company Limited, and NNPC Limited—was executed unlawfully. The division took place through an OPL 245 Insolvency Agreement signed around March 5, a move that Malabu claims contravenes its rights.
Claims for Damages Over Unlawful Interference
Additionally, Malabu is pursuing an order for N1 trillion in damages against the defendants, asserting that this penalty is warranted due to unlawful interference with its interests in OPL 245 and violations of the Petroleum Industry Act 2021. In an affidavit supporting the motion, Alhaji Mohammed Sani Abacha, a shareholder and director, provided a detailed account of the company’s storied history and its ongoing legal struggles surrounding OPL 245.
Hearing Scheduled Amidst Ongoing Legal Battles
The judge has set the next court hearing for June 11. Just days prior, on May 22, Justice Umar permitted Malabu Oil and Gas to seek a judicial review to challenge the federal government’s executive actions regarding OPL 245. The judge acknowledged that the ex parte motion filed by Atabo, regarding the relief sought, possesses merit.
Background on OPL 245 and Recent Developments
This lawsuit emerges less than two months after President Bola Tinubu announced on March 5 that the government resolved a protracted dispute over OPL 245, one of Nigeria’s most commercially significant deep-sea oil reserves. At the time, the President’s office indicated that the agreement could enhance Nigeria’s production capacity by approximately 150,000 barrels per day. However, specifics regarding the agreement remain vague and have yet to be publicized.
Historical Context of OPL 245 Ownership
Originally awarded to Malabu Oil and Gas during General Sani Abacha’s regime in 1998, OPL 245 has been at the center of numerous legal disputes. Malabu was initially required to develop the block alongside an international technology partner, along with a $20 million signing bonus. However, after paying only $2 million, the company entered a joint agreement with Shell Nigeria Ultra Deep Limited (SNUD), who went on to win subsequent tenders during the administration of former President Olusegun Obasanjo, further complicating Malabu’s claims.
