Emmanuel Ochayi
President Bola Tinubu has instructed key government figures and agencies, including the Attorney-General of the Federation, Lateef Fagbemi, and Minister of State for Petroleum Resources, Heineken Lokpobiri, to expedite the resolution of all court cases surrounding the long-standing $1.3bn deepwater OML 245 oil block in the southern Niger Delta.
Addressing the media in Abuja, Minister Lokpobiri revealed that negotiations among the involved parties are underway, aiming to conclude the 28-year crisis and litigations concerning the highly coveted oil block within the next month.
Join our WhatsApp ChannelThe Malabu OML 245 deal, entangled with corruption allegations, fraud accusations, and protracted legal battles, dates back to 1998 when Malabu Oil and Gas, linked to former Nigerian Minister of Petroleum Dan Etete, acquired the block for $2m.
Following a series of twists, including the 2001 license revocation by President Olusegun Obasanjo and subsequent out-of-court settlement in 2006 under President Umaru Yar’Adua, Shell and Eni acquired the block in 2011 for $1.3bn, sparking ongoing disputes and litigations.
International organizations such as Transparency International raised concerns over bribery and corruption in the deal, leading to legal actions by the Nigerian government against Eni, Shell, and Malabu during former President Muhammadu Buhari’s tenure.
Minister Lokpobiri shed light on the financial repercussions of the prolonged legal battles, highlighting a staggering penalty of over 70 million pounds imposed by JP Morgan. He emphasized the collective burden this places on the Nigerian people, urging a swift resolution to prevent further financial strain.
Lokpobiri’s remarks outlined the government’s strategy, acknowledging the block’s significant economic potential and calling for constructive dialogue with Eni and Shell to address the prolonged disputes.
As the nation grapples with the looming financial repercussions, the urgency to resolve this complex issue remains at the forefront of President Tinubu’s agenda.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
