Shell, Eni Ordered To Stand Trial On Alleged Corruption In Nigeria
The oil block deal involving two European oil conglomerates in Nigeria has refused to go away.
The deal involves the 2011 purchase by Eni and Shell of Nigeria’s OPL-245 offshore oilfield - one of Africa’s most valuable oil blocks - for about $1.3 billion.
The transaction is said to have been carried in a shady way involving bribery by the companies of Nigerian politicians.
Both companies had denied any wrongdoing.
But on Wednesday, an Italian judge ordered the two companies to stand trial over alleged corruption in Nigeria with the CEO of Eni among past and present managers involved.
Besides the two companies, 13 people including Eni CEO Claudio Descalzi and former chairman of the Shell Foundation Malcolm Brinded were put on trial, some legal sources told Reuters.
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 licence 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.
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