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Article

20 Dec 2017

Author:
Stanley Reed, New York Times (USA)

Shell and Eni to Be Tried Over $1.3 Billion Nigerian Oil Deal

An Italian judge ruled on Wednesday that two of the world’s largest oil companies, Royal Dutch Shell and Eni... must go on trial on charges of corruption over a $1.3 billion oil deal in Nigeria.

The judge set a March 5 trial date in Milan for the companies as well as a group of current and former executives, including Claudio Descalzi, Eni’s chief executive, and Malcolm Brinded, a former chief of exploration and production for Shell. No current Shell officials were to be tried in the case.

Both companies have denied wrongdoing...

...The case stems from a long-running investigation by Italian prosecutors into the two companies’ purchase in 2011 of a potentially lucrative offshore tract called OPL 245 in the Atlantic Ocean off Nigeria.

The payment to the Nigerian government was intended to resolve a dispute over the tract, which was also claimed by a company called Malabu Oil and Gas. That company has been linked to a former Nigerian oil minister, Dan Etete. The Nigerian government, in turn, agreed to pay $1.1 billion to settle Malabu’s claims.

The Dutch police raided the offices of Royal Dutch Shell last year as part of the investigation.

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