Nigerian Government Files $1.1 Billion Lawsuit Against Shell, ENI -- Update

(Updates with ENI's response.)

By Adam Clark

The government of Nigeria said Thursday that it has filed a $1.09 billion claim against Royal Dutch Shell PLC (RDSA.LN) and ENI SpA (ENI.MI) in London, opening a new front in a long-running dispute over a 2011 oil-field deal.

Nigeria's claim concerns OPL 245, a prospecting license for a major offshore oil block purchased by Shell and ENI. Nigeria alleges Shell and ENI engaged in bribery and unlawful conspiracy.

"This claim reflects the determination and ongoing efforts of the Federal Republic of Nigeria to recover the very significant sums lost to corruption and the unlawful activity of Shell and ENI in this transaction," said Tom Hibbert of RPC, acting as solicitors for the Nigerian government.

The OPL 245 deal is already the subject of prosecution in Italy, and an investigation in the Netherlands. Shell and ENI have both previously denied wrongdoing.

A spokesperson for Shell said Thursday that the company maintains the deal was a fully legal transaction.

"Since this matter is before the Tribunal of Milan, it would not be appropriate for us to comment in detail on the new claims that have been made by the Federal Republic of Nigeria," the spokesperson said. "However, based on our review of the prosecutor of Milan's file and all of the information and facts available to us, we do not believe that there is a case to answer in this matter."

ENI said it continues to reject any allegation of impropriety or irregularity in connection with the deal.

"ENI reaffirms that it signed a commercial agreement in 2011 for a new license for OPL 245 with the Federal Government of Nigeria and the Nigerian National Petroleum Co., and the consideration for the license was paid directly to the Nigerian government," the company said.

Write to Adam Clark at [e-mail]

(END) Dow Jones Newswires

December 13, 2018 12:31 ET (17:31 GMT)

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