The Abuja Court of Appeal has dismissed a suit filed by Malabu Oil and Gas Ltd challenging ownership of the lucrative OPL 245 offshore oilfield, ruling in favor of Nigerian Agip Oil Company Ltd (NAOC) in a legal battle that has spanned over two decades.
In a judgment delivered on May 23, 2025, a three-judge panel led by Justice H. A. Barka overturned a 2020 Federal High Court decision which had rejected Agip’s preliminary objection. The appellate court ruled that Malabu’s suit was an abuse of court process and barred by the statute of limitations.
“Once the stipulated period has elapsed, the case is statute-barred,” Justice Barka stated. “Malabu, having failed to commence the suit within the prescribed time, cannot sustain the action.”
OPL 245, located about 150 kilometers offshore from the Niger Delta, was initially awarded to Malabu in 1998 before being revoked in 2001 and reassigned to Shell. After a 2006 out-of-court settlement restored Malabu’s ownership, the federal government reallocated the oilfield in 2011 to Shell Nigeria Exploration and Nigerian Agip Exploration through a Block 245 Resolution Agreement.
Malabu contested this reallocation, filing suit to nullify the government’s action and assert its rights over the block. Agip’s legal team, led by Babatunde Fagbohunlu, SAN, argued the suit was both time-barred and duplicative, as similar matters were already before another court.
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The Federal High Court dismissed these objections in 2020, prompting Agip to appeal. The Court of Appeal found that the trial court failed to properly address critical issues such as abuse of process and fair hearing, and thus set aside its ruling.
The decision further intensifies scrutiny over OPL 245, a deal once valued at $1.3 billion and tainted by bribery and corruption allegations involving senior Nigerian officials. In October 2024, two Italian prosecutors linked to the international corruption trial related to the deal were convicted for mishandling evidence.
Recently, Oando PLC acquired Nigerian Agip Oil Company from Eni in a $783 million transaction, consolidating control over key Nigerian oil assets including OPL 245.
