Mohammed Abacha asks Lokpobiri to retract OPL 245 resolution claim

Mohammed Abacha, son of a former head of state, says issues regarding OPL 245 are yet to be resolved.

In February, Heineken Lokpobiri, minister of state for petroleum resources, said Tinubu had directed that all disputes surrounding the OPL 245 deal should be amicably resolved. 

Speaking at the annual NOG Energy Week in Abuja on July 3, the minister said all issues had been settled.

However, in a letter dated July 4 and addressed to Lokpobiri, Abacha through Reuben Atabo, his lawyer, said contrary to the minister’s claim, no resolution has been reached.

“Sometime ago, our clients’ attention was drawn to the publication in the news media that the federal government of Nigeria plans to commence production at Zabazaba Oil Field, which is part of the Oil Block of OPL 245 owned by Malabu Oil & Gas Limited and our clients have 70% of the company’s shares,” the letter reads. 

“It was in view of the above, that on the 30th day of November 2023, our clients instructed us to write a letter to the Hon. attorney-general of the federation to notify him of our client’s shares in OPL 245 with a view for him to intervene in the resolution of the matter. 

“We received a response from the Hon attorney-general of the federation via his letter dated the 17th day of January 2024 of his inability to intervene. 

“From the foregoing, it is evident that the remarks made by your esteemed self during the opening session of the Nigerian Energy Week is not only misleading but bereft of the factual situation on ground. 

“Furthermore, the said remarks are an affront on the authority of our courts, having regard to the fact that the matter is subjudice before various courts in Nigeria. 

“By Section 6 of the 1999 Constitution of the Federal Republic of Nigeria (as amended), powers in Nigeria are vested in our Courts who are meant to determine disputes between individuals and Government. 

“Also, we are now in a democratic system of government where the rule of Law prevails and not the Rule of force.

“From the various courts, it can be seen that the federal government of Nigeria is a party to the ongoing suits and therefore the said remarks made by your esteemed self, amounts to writing judgment in your own favour notwithstanding the fact that you are a party to the suits.

“In view of the fact that the matters of OPL 245 are in court, we do not need to go into further details to allow the Hon. Justices of the various courts to dispense justice. 

“Take notice therefore that we are by this letter demanding that ‘your esteemed self, issue a statement retracting your remarks… within 14 days from the receipt of this letter, failure of which we shall take an action against you in a competent court of law without further recourse to our clients.”

THE OPL 245 SAGA

The younger Abacha is laying claim to the ownership of Malabu Oil & Gas Ltd, the company originally awarded the oil prospecting licence (OPL) in 1998 by Sani Abacha, his father.

In 2011, Shell and Eni paid $1.1 billion to acquire OPL 245 after Malabu relinquished its entire interest in the oil block.

This followed a settlement brokered by the Nigerian government to end a 10-year legal dispute on the acreage, which is considered to be one of the richest in Africa.

The oil companies also paid a signature bonus of $210 million to the Nigerian government. 

However, activists launched an international campaign, alleging that the OPL 245 deal was fraudulent and that the proceeds were used to bribe government officials.

Abacha also claims that Malabu was not represented in the 2011 resolution agreements between the federal government, Shell Nigeria Ultra-Deep and Nigeria Agip Exploration. 

STRING OF LOSSES

When former President Muhammadu Buhari assumed office in 2015, his administration commenced litigation against Royal Dutch Shell, Eni/Nigeria Agip Exploration (NAE), Shell Nigeria Ultra Deep (SNUD) Ltd, and Shell Nigeria Exploration Company (SNEPCO) over the allegations.

On March 17, 2021, an Italian court acquitted Shell, Eni and all defendants of corruption charges in the $1.1 billion deal.

In April 2020, the US Securities and Exchange Commission also closed an investigation into the deal after it could not prove fraud or corruption.

In June 2022, Nigeria lost its $1.7 billion claim against JP Morgan Bank over the transfer of proceeds from the sale of the oil block to Malabu’s directors.

After several losses, the federal government, in November 2023, withdrew its $1.1 billion civil suit in Italian courts against Eni and Shell. 

In March, Mohammed Bello Adoke, attorney-general when the OPL 245 resolution agreement was signed in 2011, was discharged by a federal capital territory high court over allegations of bribery and corruption in the transaction.

Adoke had alleged that the Abacha family was using the Buhari administration to persecute him because they believed they were short-changed in the OPL 245 deal.