Malabu Oil & Gas Ltd has initiated legal action against the Federal Government, demanding ₦1 trillion in damages over the restructuring of Oil Prospecting Licence 245 (OPL 245).
The case, filed at the Federal High Court in Abuja, challenges the government’s decision to convert the licence into Oil Mining Licence (OML) 245 and subsequently divide it among multiple operators.
The suit, brought by senior advocate Reuben Atabo, is before Justice Mohammed Umar and is listed under case number FHC/ABJ/CS/871/2026.
Named as defendants are Bola Tinubu, the Attorney-General of the Federation, and the Minister of Petroleum Resources.
Malabu argues that the conversion and division of OPL 245 were carried out while several related cases were still pending before courts, including the Supreme Court.
The company is asking the court to nullify the government’s actions, insisting that the restructuring violates due legal process and undermines its rights to the oil asset.
Specifically, the firm is contesting the allocation of the licence into four segments assigned to Shell Nigeria Ultra-Deep Limited, Shell Nigeria Exploration and Production Company Ltd, Nigerian Agip Exploration Company Ltd, and NNPC Limited under a resolution agreement reportedly signed in early March.
In its filing, Malabu described the move as unlawful and inconsistent with provisions of the Petroleum Industry Act (PIA) 2021.
The company is also seeking financial compensation, claiming that the government’s actions interfered with its commercial interests and exceeded statutory authority.
An affidavit submitted in support of the application by Mohammed Sani Abacha outlined the company’s history and its prolonged legal disputes over the oil block.
Justice Umar has scheduled June 11 for the hearing of the matter.
Earlier, the court granted Malabu permission to pursue a judicial review of the Federal Government’s actions, ruling that the application presented sufficient merit for consideration.
