Malabu Oil & Gas Sues FG Over OPL 245 Split, Seeks N1 Trillion in Damages

Malabu Oil & Gas has filed a fresh lawsuit at the Federal High Court in Abuja challenging the Federal Government’s decision to split OPL 245 into four separate assets, seeking N1 trillion in damages.

The suit, filed against the government through the Attorney General of the Federation, argues that the splitting of the oil block violates the terms of a 2011 settlement agreement that recognised Malabu’s ownership and provided for a compensation scheme.

The OPL 245 Dispute

OPL 245 is one of Nigeria’s most valuable oil blocks, originally awarded to Malabu in 1998. The block has been at the centre of a decades-long legal battle involving Malabu, Shell, Eni (Agip), and the Nigerian government, with corruption allegations stretching across multiple jurisdictions.

In March 2026, the Federal Government, Shell, Agip, and the Nigerian National Petroleum Company (NNPC) signed a resolution agreement that effectively ended years of litigation. Under that agreement, the government took control of the block and subsequently split it into four separate assets for reallocation.

Malabu’s Legal Argument

Malabu claims the government’s unilateral splitting of the block amounts to expropriation without compensation. The company says the 2011 settlement gave it a vested right to a portion of the proceeds from any transaction involving OPL 245.

“The government cannot on one hand enter into a binding settlement with Malabu and then unilaterally renege on it by carving up the asset,” Malabu’s legal team said in the filing.

The N1 trillion damages claim is based on Malabu’s estimated share of the block’s value under the 2011 settlement formula, which reportedly entitled the company to 40 percent of net proceeds.

Injunction Sought

In addition to damages, Malabu is seeking an injunction to stop the government from further dealing with the four new assets pending the determination of the suit. No hearing date has been set.

Sources: Sahara Reporters, BusinessDay, Gazette Nigeria