President Bola Tinubu has issued a directive to clear court cases concerning the $1.3 billion deepwater OML 245 oil block in the Niger Delta.
The Attorney-General of the Federation, Lateef Fagbemi, along with the Minister of State for Petroleum Resources, Heineken Lokpobiri, and the Economic and Financial Crimes Commission (EFCC), among others, have received this directive.
The Oil Mining Lease (OML) 245 was awarded to Malabu Oil and Gas Ltd. by the federal government in 1998 for $20 million. Covering a deep-water offshore area over 1,000 meters below sea level, the license has been marred by allegations of fraud and corruption, resulting in prolonged litigation spanning over 28 years.
Lokpobiri disclosed that negotiations are ongoing among the involved parties to resolve the crisis and litigations surrounding the oil block in the next month.
The minister highlighted the challenges faced by the government in various court cases initiated by the previous administration and the financial penalties incurred, including over £70 million in a case brought by JP Morgan.
Addressing the need to put the idle and prolific oil block to productive use, the government aims to resolve the issues transparently. The parties involved in negotiations include Eni, Shell, the Attorney-General of the Federation, NUPRC, EFCC, NNPC Ltd, and the Minister of State for Petroleum.
The goal is to attract investments to the sector for the benefit of Nigerians and the nation’s economy.
