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Mohammed Abacha Takes OPL 245 Ownership Dispute to Supreme Court

Published 11 hours ago4 minute read
Mohammed Abacha Takes OPL 245 Ownership Dispute to Supreme Court

Mohammed Abacha, son of the late former Nigerian military head of state Sani Abacha, has initiated legal proceedings to challenge a Court of Appeal judgment that dismissed his efforts to reclaim ownership of the OPL 245 oil well. Abacha's legal representatives, headed by Reuben Atabo, have submitted a motion on notice to the Court of Appeal, requesting authorization to formally appeal the May 23 judgment at the Supreme Court.

This legal action stems from an initial suit filed by Malabu Oil and Gas Ltd at the Federal High Court, which contested the reallocation of the oil prospecting licence (OPL) 245 to Agip and Shell. Agip's legal team, led by Babatunde Fagbohunlu, had raised a preliminary objection, arguing that the Federal High Court lacked jurisdiction due to several reasons, including the claim that the suit was statute-barred as it was filed more than five years after the allocation. On December 22, 2020, the trial court dismissed Agip's preliminary objection against Malabu Oil’s case, prompting parties to seek redress at the Court of Appeal.

In a judgment delivered on May 23, 2025, a three-member panel of the appellate court nullified the ruling of the Federal High Court. Justice Hamma Akawu Barka, who presided over the panel, determined that the lower court had struck out Agip's preliminary objection without adequately resolving the issues raised concerning fair hearing, abuse of court process, and the statute-barred nature of the case. The appellate court, in a unanimous decision, agreed with Agip that these key issues were not addressed by the lower court. Consequently, the panel resolved this issue in Agip's favor and also held that Malabu Oil's court action at the Federal High Court was initiated outside the prescribed three-month timeline for such matters, thereby setting aside the judgment delivered by Justice Binta Nyako.

Following this decision, Malabu Oil filed a motion on June 4, seeking leave from the Court of Appeal to appeal to the Supreme Court against the May 23 judgment. The grounds for this appeal are based on mixed law and fact. The motion also requests permission to introduce new or fresh issues of law in the appeal to the Supreme Court, specifically concerning 'grounds 1, 3, 4, 9, 14, 16 and 17 of the proposed notice of appeal'. An affidavit sworn by Edwin John supporting the motion stated that there are significant questions of law for the Supreme Court to consider and expressed confidence in the appeal's potential success, arguing that granting the motion would be in the interest of justice and allow the applicant to exercise their constitutional right of appeal.

The OPL 245 controversy centers on Mohammed Abacha's claim to the ownership of Malabu Oil and Gas Ltd. The company was originally awarded the OPL in 1998 by his father, the late Sani Abacha. In 2011, Shell and Eni acquired OPL 245 for $1.1 billion after Malabu relinquished its entire interest in the oil block. This acquisition was part of a settlement brokered by the Nigerian government to end a decade-long legal dispute over the acreage, which is considered one of Africa's richest. The oil companies also paid a signature bonus of $210 million to the Nigerian government.

However, the 2011 deal was soon plagued by allegations of fraud, leading activists to launch an international campaign asserting that the proceeds were used to bribe government officials. Mohammed Abacha also claimed that Malabu Oil and Gas Ltd was not represented in the 2011 resolution agreements between the federal government, Shell Nigeria Ultra-Deep, and Nigeria Agip Exploration.

Under the administration of former President Muhammadu Buhari, which began in 2015, the Nigerian government initiated litigation against Royal Dutch Shell, Eni/Nigeria Agip Exploration (NAE), Shell Nigeria Ultra Deep (SNUD) Ltd, and Shell Nigeria Exploration Company (SNEPCO) related to these allegations. Despite these efforts, there has been a series of legal setbacks for those alleging corruption. In March 2021, an Italian court acquitted Shell, Eni, and all other defendants of corruption charges in the $1.1 billion deal. Similarly, in April 2020, the US Securities and Exchange Commission closed its investigation into the deal, citing inability to prove fraud or corruption.

Further, 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. Following these losses, the federal government withdrew its $1.1 billion civil suit in Italian courts against Eni and Shell in November 2023. In March 2024, Mohammed Bello Adoke, who was the Attorney-General of the Federation and Minister of Justice when the OPL 245 resolution agreement was signed in 2011, was discharged by a Federal Capital Territory (FCT) High Court over allegations of bribery and corruption in the transaction. Adoke had previously 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.

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