The Court of Appeal in Abuja dismissed Malabu Oil’s $1.3 billion suit over the disputed OPL 245 oilfield, ruling in favor of Nigerian Agip Oil. The court overturned a 2020 ruling and deemed Malabu’s claim an “abuse of court process.” This follows a 2011 agreement where Malabu reportedly gave up its rights to the deep-water offshore oilfield near the Niger Delta.
Agip’s legal team argued that OPL 245 was officially awarded to Shell Nigeria Exploration and Nigerian Agip Exploration in May 2011 under the Petroleum Act. Malabu challenged this, claiming its earlier allocation was still valid and sought to nullify the award to Agip and Shell. Agip filed a preliminary objection, citing the suit as statute-barred and an abuse of court process due to ongoing related litigation over Malabu’s internal ownership disputes. The Federal High Court dismissed Agip’s objection in 2020, prompting an appeal. The case involves Malabu, the Nigerian government, the Minister of Petroleum Resources, Shell subsidiaries, and Chief Dan Etete.
In Appeal Court filings, Agip argued the lower court’s failure to rule on its preliminary objection violated its right to a fair hearing and was an abuse of process. Malabu’s lawyer, Dr. Reuben Atabo SAN, countered that no fair hearing was denied, noting all objections were heard and ruled on together.In 2010, President Goodluck Jonathan upheld a consent judgment that led Shell and Eni to buy the oil block from Malabu for $1.1 billion, with a $210 million bonus paid to Nigeria.
The deal was later accused of corruption and bribery. In October 2024, two Milan prosecutors were jailed for withholding documents related to Eni’s defense in the corruption case.In August 2024, Oando PLC completed the $783 million acquisition of Nigerian Agip Oil Company from Eni, marking a key step in Oando’s long-term strategy.
