On July 2, 2001, President Olusegun Obasanjo revoked Malabu’s licence and assigned the oil block to Shell — without a public bid. Malabu went to court, but ownership was reverted to it in 2006 after it reached an out-of-court settlement with the federal government.
Shell fought back and commenced arbitration against Nigeria, but when President Goodluck Jonathan came to power in 2010, the controversy appeared to have been resolved with Shell and Eni agreeing to buy the oil block from Malabu for $1.1 billion.
The oil companies also paid $210 million as signature bonus to the federal government of Nigeria.
However, the deal has been enmeshed in more controversies and trials over allegations of bribery and shady deals by officials of the Nigerian government and their foreign accomplices.
The OPL 245 is reported to be one of the biggest untapped oil resources in Africa with reserves estimated at 9 billion barrels.
“Bribes were paid. The receipt of those bribes and the participation in the scheme of said officials was in breach of their fiduciary duties and Nigerian criminal law,” the court document read.
