SAN FRANCISCO, September 09, (THEWILL) – The Nigerian Government on Wednesday asked a Milan court to compel oil multinationals, Royal Dutch Shell and ENI to make an upfront payment of $1.092 billion for damages it suffered over OPL 245 oil block billion
At a hearing into alleged corruption linked to Eni and Shell’s 2011 acquisition of the OPL 245 field, Lucio Lucia, lawyer for the Nigerian government, called for a guilty verdict and an advance payment, ahead of any broader damages package set by a court at a later date.
Lucia did not specify how much Nigeria was seeking in damages overall but said the disputed deal had deprived Nigeria of oil profits. The calculated profits under two different scenarios, according to Lucia, “amounted to $4.5 billion and $5.9 billion respectively”.
The long-running bribery case revolves around the purchase of the OPL 245 offshore field for about $1.3 billion from Malabu, a company owned by former Nigerian oil minister Dan Etete.
Prosecutors on behalf of Nigeria alleged that about $1.1 billion of that money was siphoned off to politicians and middlemen, while Shell said the 2011 agreement was a settlement of long-standing litigation after the previous allocation of the block by the Nigerian government to Shell and Malabu.
Etete, Eni, Shell and the managers accused in the Milan court case, including Eni CEO Claudio Descalzi, have all denied any wrongdoing.
Eni said in a statement on Wednesday that the purchase price for OPL 245 was “congruous and reasonable” considering the value of the field and investment needed to bring it into production.
In July, prosecutors in the case asked for Eni and Shell to be fined and some of their present and former executives, including Eni’s Descalzi, to be jailed. They also requested the confiscation of a total of $1.092 billion from all the defendants in the case, the equivalent of the bribes alleged to have been paid.
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The next hearing in the trial is scheduled for Sept. 21, when the defence is due to present its case.
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