InfoStride News reported that the Nigerian Federal Government has taken steps to withdraw a $1.1 billion lawsuit against Shell Plc and Eni SpA, marking a significant development in the prolonged legal dispute over alleged corruption in the OPL 245 oil block deal. The Ministry of Justice initiated the withdrawal in an Italian Court, putting an end to a decade-long case.
In a statement to Bloomberg, Eni SpA confirmed that the government had communicated its intention to withdraw the claims unconditionally by Friday. Notably, Nigeria has also opted to “irrevocably” suspend any future legal claims in Italy against Eni, its affiliates, and current or former officers related to rights associated with Oil Prospecting License 245 (OPL 245).
The intricate backstory involves Malabu Oil and Gas Ltd receiving the OPL 245 award from the federal military government in 1998. However, former President Olusegun Obasanjo canceled Malabu’s license in 2001, transferring the oil block to Shell without a public bid. After a legal battle, Malabu regained ownership in 2006 through an out-of-court settlement with the federal government.
Following these events, Shell entered arbitration in response to Nigeria’s actions. When President Goodluck Jonathan took office in 2010 and enforced the consent judgment, the conflict appeared to be resolved. Subsequently, Shell and Eni reached an agreement to acquire the oil block from Malabu for $1.1 billion, including a $210 million signature bonus paid to the Nigerian government.
However, an international campaign raised allegations of corruption surrounding the OPL 245 deal, asserting that the agreement was tainted by bribery to government officials.
In 2020, the Nigerian government filed a $1.1 billion compensation case against Shell/SNUD and Eni. Despite the international Court in Italy declaring Shell and its affiliate partners not guilty on all counts, the legal battles continued. The Ministry of Justice’s recent letter to Eni SpA signifies the official withdrawal of the case, bringing the extended lawsuit to a conclusive end.
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