Nigerian Oil Deal Entangles Shell -- WSJ
March 02 2019 - 3:02AM
Dow Jones News
By Christopher Alessi
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 2, 2019).
LONDON -- Royal Dutch Shell PLC is expected to face prosecution
in the Netherlands on criminal charges connected to a 2011 Nigerian
oil deal, the company said Friday, the latest twist in one of the
oil industry's biggest bribery scandals.
The Anglo-Dutch oil giant said in a short statement that the
Dutch public prosecutor's office was preparing to prosecute the
company for charges "directly or indirectly" connected to a 2011
oil tender.
The Dutch Public Prosecution Service said that it had concluded
through its investigation of Shell that there were prosecutable
offenses. "We are not yet able to make any announcements about the
further course of the case at the moment," a spokeswoman for the
prosecution service said.
The likely prosecution stems from a $1.3 billion deal jointly
made by Shell and Italian rival Eni SpA to develop an oil field in
the waters off Nigeria's coast. The companies had acquired the
field, known as OPL245, from a company owned by former Nigerian oil
minister Dan Etete. The deal quickly fell apart and the field
remains undeveloped.
Shell and Eni have denied wrongdoing in previous cases related
to the deal.
Shell declined to comment beyond its statement on the expected
Dutch case. In a statement Friday, Eni said it isn't under
investigation by Dutch authorities and continues to deny all
wrongdoing in connection with the 2011 deal.
The move by Dutch prosecutors comes on the heels of an ongoing
corruption case against Shell and Eni being brought by Italian
prosecutors related to the OPL245 deal. Italian officials had
alleged that Eni Chief Executive Claudio Descalzi and the other
executives at both Shell and state-backed Eni knew most of the $1.3
billion the companies paid to the Nigerian government to acquire
the drilling rights for OPL245 would be distributed as bribes.
The Shell executives, who have been indicted, are no longer
employed by the company and no other Shell executives are on trial
in Milan.
Italian prosecutors also said Goodluck Jonathan, the Nigerian
president at the time of the deal, received part of the kickbacks.
Mr. Jonathan has denied involvement.
Shell and Eni denied wrongdoing in relation to allegations made
in the Italian trial.
In December, as part of a related proceeding, a Milan judge
stated that Shell and Eni were "fully aware" that part of their
payments for the oil tender would be used for kickbacks to Nigerian
politicians and officials. Prosecutors had alleged that around $1.1
billion of the $1.3 billion paid for the oil field was distributed
to agents and middlemen.
The Italian judge's statement came three months after the court
found two middlemen -- Nigerian Emeka Obi and Italian Gianluca Di
Nardo -- guilty of international corruption, sentencing them to
four-year prison sentences. The main Italian case targeting Shell
and Eni is ongoing.
The companies have also faced potential legal challenges in
Nigeria, where the country's financial crimes watchdog has
threatened to strip the companies of their claim to the oil
field.
Corrections & Amplifications In December, as part of a
related proceeding, a Milan judge stated that Shell and Eni were
"fully aware" that part of their payments for the oil tender would
be used for kickbacks to Nigerian politicians and officials. An
earlier version of this article incorrectly stated that the Milan
judge made the statement as part of the ongoing trial of Shell and
Eni in Italy. (March, 1, 2019)
Write to Christopher Alessi at christopher.alessi@wsj.com
(END) Dow Jones Newswires
March 02, 2019 02:47 ET (07:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
ENI (NYSE:E)
Historical Stock Chart
From Jun 2024 to Jul 2024
ENI (NYSE:E)
Historical Stock Chart
From Jul 2023 to Jul 2024