Tinubu Directs AGF, EFCC, and Others to Resolve $1.3 Billion Malabu Oil Deal Saga
President Bola Tinubu has instructed the Attorney-General of the Federation, Lateef Fagbemi, to expedite the resolution of court cases related to the $1.3 billion deepwater OML 245 oil block in the Niger Delta region.
Other key figures tasked with carrying out the president’s directive include the Minister of State for Petroleum Resources, Heineken Lokpobiri, and the Economic and Financial Crimes Commission (EFCC). Additionally, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and Nigerian National Petroleum Company Limited (NNPC Ltd) are expected to play roles in this process.
Mr. Lokpobiri conveyed the president’s directive to journalists in Abuja. The federal government initially awarded the Oil Mining Lease (OML) 245 to Malabu Oil and Gas Ltd. for 20 million dollars in 1998. This lease covers a defined deep-water offshore area situated more than 1,000 meters below sea level and approximately 150 kilometers off the Niger Delta.
However, the progression of this award has been marred by challenges, resulting in ongoing litigation and controversies surrounding allegations of fraud and corruption. Mr. Lokpobiri indicated that the parties involved in the deal are currently engaged in negotiations aimed at resolving the longstanding crisis and litigation surrounding the lucrative oil block located in the southern Niger Delta region within the next month.
“The previous administration initiated most of the cases that we are talking about today, and they took us to court, while we took Eni, Malabu, and others to different courts in Europe, Canada, etc, but we didn’t win any of the cases.
“To even shock you, there is one that got us a penalty of over 70 million pounds,” he said.
The statement mentions that JP Morgan, a financial institution, has reportedly sued the Nigerian government, alleging an attempt to tarnish its image in the saga related to the $1.3 billion deepwater OML 245 oil block.
The minister suggests that as a result, the penalty imposed on Nigeria is now considered binding. It seems to indicate that the legal actions taken by JP Morgan have had repercussions, potentially affecting the government’s position in the ongoing dispute and negotiations surrounding the oil block.
“So we have been fined over 70 million pounds by the court. Who will pay for that? You and I will pay that, or our children will pay, because it is a judgment debt.
“And in all the ones that we pursue both in Switzerland and other locations, we have no evidence to get a conviction.
“And so it makes sense for this government to come and say that for 28 years, this block has been idle.
“This block is a prolific block that will add so much value to our economy, so let’s see how we can resolve the problem,” he said.
The minister mentioned ongoing negotiations with Eni and Shell to address the issues surrounding the $1.3 billion deepwater OML 245 oil block. It was agreed at the last meeting that the parties involved would continue with the negotiations and reconvene within one month to work towards resolving all the outstanding issues, ensuring the continuity of investments in the oil block.
The federal government’s delegation interfacing with Eni and Shell includes key figures such as the Attorney-General of the Federation, leading the delegation, along with representatives from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Economic and Financial Crimes Commission (EFCC), NNPC Ltd, and the Minister of State for Petroleum.
This collaborative effort aims to find a comprehensive resolution to the long-standing issues surrounding the oil block and facilitate the continuation of investments in the sector.
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“We are transparent about this process. We have a full government in resolving this matter. Everything is being done transparently.
“This process has nothing to benefit the President as an individual, his interest is the welfare of Nigerians and to attract investments to the sector for Nigerians to benefit from God-given natural resources,” the minister said.
