The federal government has withdrawn its $1.1 billion lawsuit against Shell Plc alleging corruption in relation to the oil prospecting licence (OPL) 245 deal.

A Shell spokesperson quoted in a report by Bloomberg on Friday said FG has ended civil proceedings related to OPL 245 before Italy’s highest court.

On Thursday, Eni SpA, Shell’s partner in the field, had confirmed that it received a letter from the government, saying the claims would be withdrawn “unconditionally” by Friday.

Also, the spokesperson in Shell said: “We are pleased that this claim has been withdrawn.”

“It brings to an end to all legal cases against Shell on OPL 245 in Italian courts.”

THE OPL 245 SAGA

OPL 245 is an oil block located in the Niger Delta area of Nigeria. 

On April 9, 1998, the federal military government awarded OPL 245 to Malabu Oil and Gas Ltd, which was said to be owned mainly by Mohammed Abacha, son of Sani Abacha, and Etete, who was the petroleum minister at the time.

Former President Olusegun Obasanjo, on July 2, 2001, revoked Malabu’s licence and assigned the oil block to Shell – without a public bid.

Malabu went to court but the ownership was reverted to it in 2006 after the company reached an out-of-court settlement with FG.

Shell fought back and commenced arbitration against Nigeria, but when former president Goodluck Jonathan came to power in 2010 and implemented the consent judgment, returning the oil block to Malabu, the controversy appeared to have been resolved with Shell and Eni agreeing to buy the oil block from the Nigerian company for $1.1 billion.

The oil companies also paid $210 million as a signature bonus to the federal government.

But activists launched an international campaign alleging that the OPL 245 deal was fraudulent and that the proceeds were used to bribe government officials.

A STRING OF LOSSES

When former President Muhammadu Buhari came to office in 2015, his administration started a series of litigation against Royal Dutch Shell, Eni/Nigeria Agip Exploration (NAE), Shell Nigeria Ultra Deep (SNUD) Ltd, and Shell Nigeria Exploration Company (SNEPCO) over the allegations.

On May 22, 2020, a UK court declined jurisdiction in a case filed by Nigeria against Shell/SNUD and Eni asking for compensation in the sum of $1.1 billion.

An Italian court, on March 17, 2021, acquitted Shell, Eni and all defendants of corruption charges in the $1.1 billion deal.

Also in June 2022, Nigeria lost its $1.7 billion claim against JP Morgan Bank over the transfers of proceeds from the sale of the oil block to Malabu’s directors.

Previously, the US department of justice investigated the transaction and announced in October 2019 that it was closing the case.

In April 2020, the US Securities and Exchange Commission (SEC) also closed its investigation into the deal after it could not prove fraud or corruption.

However, Nigeria is still prosecuting cases against Shell and Eni in Nigerian courts.

Meanwhile, Mohammed Bello Adoke, former attorney-general of the federation when the OPL 245 resolutions agreements were signed, was also charged to two Nigerian courts on various allegations, including fraud and money laundering.

He denies all allegations and has filed a no-case submission after the Economic and Financial Crimes Commission (EFCC) did not provide witnesses or facts to substantiate the claims.

Adoke recently said Ibrahim Magu, former acting chairman of the EFCC, has apologised to him over the criminal trials which he said Magu masterminded to help Nigeria win the cases in Italy and the UK to no avail.

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The federal government has withdrawn its $1.1 billion civil suit against Eni in relation to the oil prospecting licence (OPL) 245 deal, according to Bloomberg, quoting the ministry of justice.

Nigeria will waive the claims against Eni before Italy’s highest court.

The federal government will withdraw the suit “unconditionally” and “with immediate effect” no later than November 17, according to the report.

The federal government will also “irrevocably” waive the right to further legal action in Italy against Eni, its affiliates, current and past officers as it relates to the controversial OPL 245 deal.

The publication said Eni confirmed receipt of the letter and that the company said it is ready to consider and work with the federal government to ensure the development of the oil block.

THE OPL 245 SAGA

On April 9, 1998, the federal military government awarded OPL 245 to Malabu Oil and Gas Ltd, which was said to be owned mainly by Mohammed Abacha, son of the Sani Abacha, and Etete, who was the petroleum minister at the time.

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 and 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 and implemented the consent judgment returning the oil block to Malabu, the controversy appeared to have been resolved with Shell and Eni agreeing to buy the oil block from the Nigerian company for $1.1 billion.

The oil companies also paid $210 million as signature bonus to the federal government of Nigeria.

But activists launched an international campaign alleging that the OPL 245 deal was fraudulent and that the proceeds were used to bribe government officials.

A STRING OF LOSSES

When former President Muhammadu Buhari came to office in 2015, his administration started a series of litigation against Royal Dutch Shell, Eni/Nigeria Agip Exploration (NAE), Shell Nigeria Ultra Deep (SNUD) Ltd, and Shell Nigeria Exploration Company (SNEPCO) over the allegations.

On May 22, 2020, a UK court declined jurisdiction in a case filed by Nigeria against Shell/SNUD and Eni asking for compensation in the sum of $1.1 billion.

On March 17, 2021, an Italian court acquitted Shell, Eni and all defendants of corruption charges in the $1.1 billion deal.

Also in June 2022, Nigeria lost its $1.7 billion claim against JP Morgan Bank over the transfers of proceeds from the sale of the oil block to Malabu’s directors.

Previously, the US Department of Justice investigated the transaction and announced in October 2019 that it was closing the case.

In April 2020, the US Securities and Exchange Commission also closed investigation into the deal after it could not prove fraud or corruption.

However, Nigeria is still prosecuting cases against Shell and Eni in Nigerian courts but with the latest move, they may be terminated.

Meanwhile, Mohammed Bello Adoke, former attorney-general of the federation when the OPL 245 resolutions agreements were signed, was also charged to two Nigerian courts on various allegations, including fraud and money laundering.

He denies all allegations and has filed a no-case submission after the Economic and Financial Crimes Commission (EFCC) did not provide witnesses or facts to substantiate the claims.

Adoke recently said Ibrahim Magu, former acting chairman of the EFCC, has apologised to him over the criminal trials which he said Magu masterminded to help Nigeria win the cases in Italy and the UK to no avail.

The post OPL 245: After a string of judicial losses, FG withdraws $1.1bn suit against Eni appeared first on New Mail Nigeria.

He lifted the arrest warrant earlier issued against the defendants and ruled that it would be reissued after the prosecution has served them by substituted means due to their unavailability.

The Commission had on April 17, 2019, obtained a warrant of arrest against Adoke, a former Minister of Petroleum Resources, Dan Etete, and four others over the OPL 245 scandal.

The EFCC filed criminal charges against the defendants, but having all fled the country, it has been difficult for the Commission to serve them the charges or produce them in court.

The situation forced the EFCC to apply for a warrant of arrest against them, which was granted by the court,empowering the Nigeria Police Force and Interpol arrest them, anywhere they are seen.

Again, it has been difficult to execute the warrant as the defendants remained in hiding in foreign locations, leaving the court to contend with endless adjournments in the matter.

With the development, the defendants through their counsel went to court, asking that the warrant be set aside, based on the fact that the EFCC has so far not served them any charges.

Justice Senchi obliged them, saying the application was meritorious. The trial judge stated that the EFCC ought to have served the charges to the defendants before applying for the arrest warrant that was granted to it.

The judge further ruled that the arrest warrant would be reissued against the defendants if they refused to show up in court after they have been served and upon a new application by the EFCC.

Justice Senchi, however, stated that the EFCC ought to have informed the court that it could not trace the defendants so as to serve them the charges, and that the court would have authorised the Commission to serve them by substituted means, which may be by a newspaper advertisement or through their legal representatives when they are in court.

Following Justice Senchi’s pronouncements, prosecuting counsel, Aliyu Yusuf informed the court that the Commission was going to apply to serve the defendants, through their legal representatives.

“As we cannot serve them because they are at large, we will write an application for leave of court, permitting us to serve the accused through their lawyers and if after adjournment they did not show up, we will still ask the court for a warrant of arrest,” Yusuf said.

It could be recalled that the government of former President Olusegun Obasanjo revoked the OPL 245, which the late General Sani Abacha granted Etete, who was his Petroleum Minister and reassigned it to Shell Nigeria Exploration and Production Company. Etete’s Malabu Oil and Gas, however, reclaimed the oil block in 2006 through the court. While Shell challenged the decision, a fraudulent settlement and resolution came under President Goodluck Jonathan’s government with Shell and Eni buying the oil block from Malabu in the sum of $1.1billion.

Investigations by the EFCC into the deal revealed crimes that border on conspiracy, forgery of bank documents, bribery, corruption and money laundering to the tune of over $1.2 billon against Malabu Oil and Gas Ltd, Shell Nigeria Ultra Deep (SNUD), Nigeria Agip Exploration (NAE) and their officials, culminating in criminal charges against Adoke, Etete and others, which is still pending before the FCT High Court and the Federal High Court.

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