By Emmanuel Olugua
The Federal High Court in Abuja on Thursday granted Malabu Oil & Gas leave to commence judicial review proceedings against the Federal Government over the restructuring and reallocation of Oil Prospecting Licence 245 (OPL 245), reopening one of Nigeria’s most contentious oil sector disputes.
In a ruling delivered by Justice Mohammed Umar, the court held that the ex parte application filed by Malabu was meritorious and disclosed sufficient grounds for judicial review.
The application, argued by Malabu’s counsel, Reuben Atabo, seeks declaratory and injunctive relief against what the company described as executive actions by the Federal Government in splitting the oil block into multiple assets and reallocating them to other operators.
Justice Umar said the court was satisfied with the affidavit evidence presented in support of the application, particularly the depositions contained in the supporting processes filed before the court.
The judge subsequently granted leave for the action to proceed and adjourned the matter until June 11 for the filing and service of the originating summons on the respondents.
Court documents showed that the suit, marked FHC/ABJ/CS/871/2026, listed the President, the Attorney-General of the Federation, and the Minister of Petroleum Resources as first, second, and third respondents respectively.
Malabu alleged that the Federal Government, through an agreement identified as the OPL 245 Resolution Agreement executed around March 5, fragmented the licence into four separate assets before reallocating them to major operators in the petroleum industry.
According to the company, the assets were reassigned to Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration and Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited.
The company argued that the restructuring and subsequent reallocations were carried out without the consent or approval of its directors, which it contends amounts to a violation of its legal and proprietary interests in the oil block.
The latest legal move revives scrutiny around OPL 245, one of Nigeria’s most commercially significant offshore oil assets, estimated to contain billions of barrels of crude reserves.
The oil block has remained at the centre of prolonged legal, regulatory, and commercial disputes involving government authorities, international oil companies, and Malabu over ownership rights and allocation procedures.
Although Thursday’s ruling did not address the substantive claims, legal analysts said the court’s decision to grant leave for judicial review indicated that the application met the threshold for further judicial examination.
Industry observers said the dispute could have wider implications for investor confidence and contractual certainty within Nigeria’s upstream petroleum sector, particularly as the Federal Government intensifies efforts to reposition the industry under the Petroleum Industry Act and attract fresh investment into deep-water exploration projects.
The proceedings are expected to attract close attention across the oil and gas industry given the strategic value of OPL 245 and the involvement of major operators in Nigeria’s energy sector.
The Federal Government and the other respondents had not formally responded to the allegations as of the time of filing this report.