By Vivian Okejeme
Malabu Oil & Gas Ltd, has sued the Federal Government before the Federal High Court, Abuja, over the splitting of the oil block into four separate assets.
The firm, through its counsel, R.O. Atabo (SAN) is challenging the decision of the FG to split OPL 245 among Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration Production Company Ltd, Nigerian Agip Exploration Company Ltd and the Nigerian National Petroleum Company Limited.
In the fresh suit marked FHC/ABJ/CS/871/2026, the firm asked the court to declare the government’s actions illegal and unconstitutional.
Malabu is also seeking N1 trillion in damages over what it described as unlawful interference with its rights over the oil block.
The defendants in the matter are President, the Attorney-General of the Federation and the Minister of Petroleum Resources.
Part of the reliefs sought by the firm includes a declaration that the executive actions leading to the sharing of the asset violated its subsisting rights over OPL 245.
Malabu argued that neither the Petroleum Industry Act nor any other law empowered the government to create concurrent possessory rights over the oil block while its own rights remained valid.
Moreover, they wants the court to nullify the Block 245 Resolution Agreement and the subsequent conversion of OPL 245 to OML 245.
According to Malabu, the conversion was carried out despite pending suits before the Federal High Court, the Court of Appeal and the Supreme Court.
In an affidavit deposed to by one Aliyu Abacha, the company said it was originally granted OPL 245 on April 29, 1998 after fulfilling all financial obligations, including payment of a $2.04m signature bonus.
The affidavit stated that although the licence was revoked in 2001, the dispute was later settled out of court in 2006, with the Federal Government agreeing to reallocate the oil block to Malabu.
The deponent said the government subsequently reallocated OPL 245 to the company through a letter dated July 2, 2010.
Malabu insisted that the reallocation granted it exclusive possessory rights which had never been lawfully revoked.
The firm accused the government of deliberately excluding it from the 2026 Resolution Agreement despite being aware of its subsisting interests in the oil block.
It also denied entering into any agreement surrendering its rights over the asset to any party.
The affidavit further cited statements credited to Presidential Adviser on Energy, Mrs Olu Arowolo-Verheijen, and NNPCL Group Chief Executive Officer, Bayo Ojulari, as evidence that the government was determined to proceed with the deal.
Ojulari was quoted as saying the resolution would pave the way for the development of the Zabazaba-Etan deepwater project capable of adding about 150,000 barrels of oil per day to Nigeria’s production output.
Malabu, however, argued that the pronouncements confirmed attempts to take over its asset for private interests.
Therefore the company urged the court to intervene, alleging abuse of executive powers by the defendants.
Hearing on the suit is fixed for June 11.
