By John Ikani
The Federal Government of Nigeria is retracting civil claims amounting to $1.1 billion against Eni SpA, an energy producer.
The Ministry of Justice, as per a letter seen by Bloomberg, will unconditionally and immediately waive the claims before Italy’s highest court, no later than November 17.
Eni SPA, in a move to divest onshore assets in Nigeria, sold its Nigerian onshore subsidiary to local company Oando. However, the Italian group retained offshore activities in Nigeria, specifically with the deal on its Nigerian unit, Agip Oil Company Ltd. (NAOC).
In connection to a 2011 oilfield deal, the government filed a $1.1 billion lawsuit against Royal Dutch Shell and Eni in a London commercial court. The OPL 245 oilfield, subject to an ongoing corruption trial in Milan, is at the core of the legal actions.
Milan prosecutors allege that bribes totalling around $1.1 billion were paid to secure the license for the oilfield, which has never entered production due to disputes.
The new London case also revolves around payments made by the companies to obtain the OPL 245 oilfield license in 2011.
The allegations suggest that “funds purportedly paid to the Federal Republic of Nigeria were immediately transferred to a company controlled by Dan Etete, the former Nigerian minister of petroleum, for bribes and kickbacks.”
Nigeria contends that “Shell and Eni engaged in bribery, unlawful conspiracy, and dishonest assistance to corrupt Nigerian government officials.”
The Attorney General’s office, as of the time of filing this report, has not responded to inquiries for comments, according to Bloomberg.
Shell maintains that the 2011 settlement related to OPL 245 was a legal transaction with Eni and the Federal Government of Nigeria.
Eni, in an emailed statement, said it “rejects any impropriety or irregularity in connection with the transaction.”
The company said it “signed a commercial agreement in 2011 for a new license for OPL 245 directly with the Federal Government of Nigeria and the Nigerian National Petroleum Company.”
Nigeria has also filed a London case against US bank JP Morgan for its role in transferring over $800 million of government funds to Dan Etete, convicted of money laundering.
In a separate trial, a Milan court found a middleman guilty of corruption, alleging he received a mandate from Etete to find a buyer for OPL 245, collecting $114 million for his services.
