Malabu Oil & Gas Sues Nigerian Govt For Splitting OPL 245 Into Four Assets, Seeks N1Trillion In Damages – Report

The long-running controversy surrounding Oil Prospecting License (OPL) 245 has resurfaced at the Federal High Court in Abuja, where Malabu Oil & Gas Ltd has filed a fresh motion challenging the Federal Government’s decision to split the oil block into four separate assets.

In Suit No: FHC/ABJ/CS/871/2026, Malabu is asking the court to declare the government’s actions illegal, nullify the disputed agreements, restrain further interference, and award damages of N1 trillion for what it describes as unlawful encroachment on its rights.

In the suit, Malabu Oil & and Gas is directly challenging the actions of the Nigerian government, naming the President of Nigeria, the Attorney-General of the Federation, and the Minister of Petroleum Resources as the first to third defendants, respectively.

The suit was filed on Monday, May 25, 2026 by a team of lawyers led by R.O. Atabo (SAN).

Malabu’s prayers include: “A declaration that the executive actions of the 1st & 3rd Respondents, to wit: splitting OPL 245 into Four (4) separate Assets to be managed by Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Ltd, Nigerian Agip Exploration Company Ltd and Nigerian National Petroleum Company (NNPC) Limited via the OPL 245 Resolution Agreement executed on or about the 5th day of March, 2026 whilst Applicant’s rights and interests in OPL 245 are still subsisting, amount to illegal and unlawful exercise of executive powers.”

It also seeks: “A declaration that the 1st & 3rd Respondents have no powers under the Petroleum Industry Act, 2021 or any other Law to create concurrent exclusive possessory rights over OPL 245 in favour of any other entity or persons during the subsistence of Applicant’s exclusive possessory rights over OPL 245.

“A declaration that the Block 245 Resolution Agreement and the subsequent purported Letter of grant of OPL 245 issued by the 1st & 3rd Respondents are exercises outside the scope of their Statutory Powers under the Petroleum Industry Act.

“An order quashing, setting aside and/or nullifying the conversion of OPL 245 to OML 245 by the 1st & 3rd Respondents during the pendency of Suit Nos: FHC/ABJ/CS/201/2017 and FHC/ABJ/ CS/206/2017 before this Court, APPEAL NOS CA/A/393/2019, and CA/A/883/2020 before the Court of Appeal of Nigeria and APPEAL NOS: SC/CV /356/2025 and SC/ CV/959/2025 before the Supreme Court of Nigeria.”

In addition, company seeks: “An order awarding damages against the Respondents jointly and severally in the sum of One Trillion Naira (N1,000,000,000,000.00) only, for unlawful and/or illegal interference with Applicant’s interests in OPL 245 and for actions that are ultra vires the provisions of the Petroleum Industry Act, 2021.”

In a sworn affidavit, shareholder and director Alhaji Mohammed Sani Abacha recounted the company’s history and its long battle over OPL 245.

“That the Applicant applied for Oil Prospecting License (OPL) and was granted same on the 29th day of April, 1998 by the then Hon. Minister of Petroleum Resources via letters of the allocation of Oil Prospecting Licenses OPLs 214 and 245,” he stated.

He explained that Malabu fulfilled all financial obligations, including payment of a $2,040,000 signature bonus, before the license was revoked in 2001. The revocation led to litigation, which was later resolved through an out-of-court settlement in 2006.

Abacha emphasized: “That it was a crucial term of the out of Court settlement Agreement that the 1st Defendant should re-allocate the Oil Prospecting License 245 (OPL 245) to the Applicant.”

“That in pursuant of and in the perfection of the crucial term of the out of court settlement agreement aforesaid, the 1stt Respondent by a letter of re-allocation dated the 2nd day of July, 2010, re-allocated OPL 245 to the Applicant,” he said.

He argued that this reallocation gave Malabu “exclusive possession of OPL 245,” which has never been lawfully revoked under the Petroleum Industry Act.

Despite ongoing litigation, Malabu claims the government went ahead to sign a new Resolution Agreement in February 2026, splitting OPL 245 among Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited.

Abacha further stated, “That I know as a fact that notwithstanding, the subsisting rights and interests of the Applicant in OPL 245 as foresaid, the Respondents willfully and/or deliberately refused to make the Applicant a party to the Block 245 Resolution Agreement, thus violating with impunity the rights and interests of the Applicant in OPL 245, which they knew subsists at the time of the said Agreement.”

“That neither the Applicant nor any of its authorized or registered Directors entered into any agreement with the 1st Respondent or any of the Respondents to relinquish any or all of the Applicant’s rights and interests in OPL 245 to any person or persons,” he added.

The affidavit also referenced public statements by government officials and oil executives.

For instance, Presidential Adviser to President Bola Tinubu on Energy, Mrs. Olu Arowolo-Verheijen, was quoted as saying in a press release, “The Settlement also represents a significant improvement on the 2011 Resolution Agreement reflecting the policy framework established under the deep water investments, while ensuring stronger value accretion and safeguards for the Federation.

“The reforms, anchored on the Petroleum Industry Act (PIA) and supported by targeted executive actions, have already contributed to renewed interest and significant capital inflows into Nigeria’s oil and gas sector.”

Similarly, the Managing Director of the Nigerian National Petroleum Company Limited, Bayo Ojulari, was quoted to have praised the deal, stating, “This resolution clears the path for the development of one of Nigeria’s most strategic deep water assets—the Zabazaba-Etan project. Progressing this development could add approximately 150,000 barrels per day to Nigeria’s oil production, representing a significant step toward strengthening our national energy security and economic resilience.”

Malabu, however, insists these pronouncements confirm the government’s determination “to take over the Asset of the Applicant for private benefits.”

Pending Litigation and Appeals

The company stressed that the government’s actions were taken despite ongoing suits and appeals.

Abacha noted, “That the conversion of OPL 245 to OML 245 was done by the 1st & 3rd Respondents during the pendency of Suit Nos: FHC/ABJ/CS/201/2017 and FHC/ABJ/CS/206/2017 before this Court, Appeal Nos CA/A/393/2019 and CA/A/883/2020 before the Court of Appeal of Nigeria and Appeal Nos: SC/CV/356/2025 and SC/CV/959/2025 before the Supreme Court of Nigeria, thus being ultra vires their executive powers.”

“Only the conduct of judicial review by this Court over the actions of the Respondents will rescue the Applicant from the apparent misuse and misapplication of executive powers and executive recklessness by the Respondents,” he added.

The matter is scheduled for hearing on June 11, 2026, at the Federal High Court in Abuja.

In the suit, Malabu Oil & Gas Ltd maintains that its rights over OPL 245 remain valid and subsisting, and that the government’s recent actions are unconstitutional, unlawful, and without legal basis. (SaharaReporters)