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The Minister of Justice and Attorney General of the Federation, Abubakar Malami, has advised the President, Major General Buhari, to end a long-running dispute with Eni SpA and Shell Plc to allow the companies to finally develop a deepwater asset, Oil Prospecting License 245.
According to a report by Bloomberg, Malami advised that investigations and lawsuits relating to the energy giants’ acquisition of the permit 12 years ago should be halted so the country can “take advantage of the fast-disappearing opportunities in the global oil exploration industry,” he was quoted as saying in a letter to Buhari dated February 6, 2023, and seen by Bloomberg.
Delays to the development of the block have had “negative economic consequences” for Nigeria, he added.
While Buhari’s administration has alleged that much of the $1.1bn paid by Eni and Shell to the Nigerian government for the rights to Oil Prospecting License 245 was subsequently diverted to bribes and kickbacks, it has suffered high-profile defeats in courts in Italy and the UK.
Eni initiated arbitration proceedings against Nigeria in 2020, accusing the government of breaching its obligations by refusing to convert the permit into one that allows the production of hydrocarbons.
Malami advised Buhari to direct the termination of a lawsuit brought against the two companies in Nigeria by the nation’s anti-corruption agency and of all investigations concerning the license, according to the letter, which was first reported by Lagos-based news website The Cable. The oil industry regulator should “expedite the conversion of OPL 245,” said Malami, who also serves as justice minister.
After the firms and serving and former executives were acquitted of corruption charges in Milan, Buhari – who doubles as Nigeria’s oil minister – consented in May 2022 to the conversion of the permit pending the conclusion of all disputes between the parties, according to Malami’s letter.
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