Coys drags FG to court over OPL 245 split, seeks N1tn damages

Malabu Oil & Gas Ltd has filed a N1 trillion suit against the Federal Government over the restructuring of Oil Prospecting Licence (OPL) 245, challenging the legality of the asset’s conversion and subsequent division among major oil operators.

In the suit marked FHC/ABJ/CS/871/2026 and filed before the Federal High Court in Abuja, the company is seeking to nullify the government’s decision to convert OPL 245 into Oil Mining Lease (OML) 245 and split it into four operational assets.

The defendants in the suit are President Bola Tinubu, the Attorney-General of the Federation (AGF), and the Minister of Petroleum Resources.

Malabu, through its counsel Reuben Atabo (SAN), argued that the government proceeded with the restructuring despite multiple pending cases on the disputed oil block at the Federal High Court and the Supreme Court.

The company is specifically challenging the OPL 245 Resolution Agreement, reportedly signed around March 5, under which the asset was divided among Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration and Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited.

Malabu contended that the action was unlawful and exceeded the powers granted under the Petroleum Industry Act (PIA) 2021.

The firm is also seeking ₦1 trillion in damages for what it described as unlawful interference with its interests in the oil block.

In a supporting affidavit, Mohammed Sani Abacha, a shareholder and director of the company, outlined the history of OPL 245 and the prolonged legal disputes surrounding ownership and control of the asset.

Justice Mohammed Umar of the Federal High Court had earlier granted Malabu leave to commence judicial review proceedings against the Federal Government over the disputed restructuring of the oil block.

Delivering a ruling on an ex parte application filed by the company, the judge held that the application was meritorious and subsequently fixed June 11 for hearing.