An Italian judge has ordered Royal Dutch Shell and Eni to stand trial over alleged corruption in Nigeria with the CEO of Eni among past and present managers involved, legal sources said Dec. 20.
The case involves the 2011 purchase by Eni and Shell of Nigeria’s OPL-245 offshore oil field—one of Africa’s most valuable oil blocks—for about $1.3 billion.
Besides the two companies, 13 people including Eni CEO Claudio Descalzi and former chairman of the Shell Foundation Malcolm Brinded were put on trial, the sources said.
Under Italian law a company can be held responsible if it is deemed to have failed to prevent, or attempt to prevent, a crime by an employee that benefited the company.
Shell said it was disappointed by the outcome of the hearing but added it believed the judges would conclude there was no case against the group or its former employees.
“There is no place for bribery or corruption in our company,” it said.
Eni reiterated that the company and its CEO had not been involved in any wrongdoing. It said the board had full confidence in Descalzi who at the time of the deal was head of exploration and production.
The OPL-245 license was initially awarded in 1998 by former Nigerian oil minister Dan Etete to Malabu Oil and Gas, a company in which he held shares.
It was then sold to Eni and Shell.
Campaign group Global Witness and others say much of the $1.3 billion in payments for the block did not go to the state but instead went to Etete, who was convicted of money laundering in a 2007 French case related to his time in the Nigerian government.
Shell has previously said it was aware that some of the payments it made to Nigeria for rights to the oilfield would go to Malabu but said the transaction was fully legal.
The trial is due to start on March 5, the sources said.
Recommended Reading
Apollo to Buy, Take Private U.S. Silica in $1.85B Deal
2024-04-26 - Apollo will purchase U.S. Silica Holdings at a time when service companies are responding to rampant E&P consolidation by conducting their own M&A.
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.