Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
Oil giants Eni and Shell will stand trial in Italy over allegations of bribery and corruption in the 2011 purchase of an offshore oil block in Nigeria/AFP

Energy

Eni and Shell to stand trial in Italy over Nigeria kickback scandal

Oil giants Eni and Shell will stand trial in Italy over allegations of bribery and corruption in the 2011 purchase of an offshore oil block in Nigeria/AFP

MILAN, Italy, Dec 20 – Italian giant Eni and fellow petroleum company Shell will stand trial in Italy over allegations of bribery and corruption in the 2011 purchase of an offshore oil block in Nigeria.

A judge in Milan ordered Eni, Shell and key figures such as Eni chief Claudio Descalzi and his predecessor Paolo Scaroni to stand trial in proceedings to begin March 5.

The companies are accused of corruption in the 2011 purchase of OPL245, an offshore oil block estimated to hold 9 billion barrels of crude, for $1.3 billion.

“Eni’s Board of Directors has reaffirmed its confidence that the company was not involved in alleged corrupt activities in relation to the transaction,” the Italian firm said in a statement Wednesday.

“Eni expresses its full confidence in the judicial process and that the trial will ascertain and confirm the correctness and integrity of its conduct,” it said.

It insisted in particular that “chief executive Claudio Descalzi was not involved in the alleged illegal conduct”.

Both companies are charged with corruption in Nigeria over the accord, which allegedly saw Nigeria’s former president Goodluck Jonathan and his oil minister pocket bribes.

The deal saw the Nigerian government act as an intermediary between the oil majors and Malabu Oil and Gas, a Nigerian company allegedly controlled by former petroleum minister Dan Etete.

Allegations of corruption and bribery have mounted in the years since, forcing Shell and Eni to repeatedly maintain that they acquired the rights to the lucrative block in line with Nigerian law.

But email exchanges between Shell management cited in a report by corruption watchdog Global Witness, and seen by AFP, suggest that Shell was aware the money was likely to be funnelled to individuals, including Etete and Jonathan.

Advertisement. Scroll to continue reading.

Etete was also ordered to stand trial by the Milan court.

Nigeria’s anti-graft agency filed corruption charges against Shell and Eni in March, accusing 11 defendants, including Etete, of “official corruption” in connection with the oil block deal.

Jonathan has denied receiving kickbacks, saying in January that he has not been “accused, indicted or charged for corruptly collecting monies” linked to the deal.

The OPL245 oil block has been a source of contention for almost two decades.

In 1998, the block was awarded by then-petroleum minister Dan Etete to Malabu Oil and Gas.

Years of legal wrangling between Malabu, the Nigerian government and Shell ensued, with Shell ultimately winning rights to the block in a partnership with Eni.

Nigerian President Muhammadu Buhari, who has promised to fight corruption in Nigeria’s oil sector, has said “mind-boggling” sums have been stolen from the public purse.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...