(A TIMELINE is a sidebar that lists in chronological order
events related to a major news story.)
LONDON, March 17 (Reuters) - An Italian court acquitted
Royal Dutch Shell and Italy's Eni on Wednesday
of corruption in one of the oil industry's biggest court cases
centred around the acquisition of a Nigerian oilfield in 2011.
Italian prosecutors alleged that most of the $1.3 billion
purchase price for the licence for the offshore oilfield known
as OPL 245 was siphoned off to politicians and middlemen.
Shell and Eni and the managers accused in the Milan court
case, including Eni Chief Executive Claudio Descalzi, have all
denied wrongdoing.
Below are some of the main events that led to the trial and
other legal actions that have arisen from the award of OPL 245:
April 1998: The Nigerian government awards OPL 245 for $20
million to Malabu Oil and Gas. Court documents later show Malabu
is owned by Dan Etete, who was oil minister at the time, and
people close to former military ruler Sani Abacha.
May 1999: Etete, on behalf of Malabu, pays $2.04 million for
the OPL 245 licence out of the $20 million the company had
agreed to pay.
March 2001: Shell signs an agreement to acquire a 40% stake
in OPL 245 from Malabu.
July 2001: The Nigerian government under new President
Olusegun Obasanjo revokes Malabu's OPL 245 licence, triggering
legal disputes over its ownership that drag on for years.
May 2002: Shell informs Malabu that its contracts have been
frustrated by the revocation of the licence.
May 2002: Shell is awarded 40% OPL 245. It starts
exploration and appraisal work and later signs a production
sharing deal with the Nigerian National Petroleum Corporation
(NNPC). Under the deal, Shell Nigeria Ultra Deep (SNUD) agrees
to pay a $209 million signature bonus, which is placed in an
escrow account pending a resolution to the Malabu dispute.
August 2002: Shell commences arbitration at the
International Court of Arbitration (ICC) against Malabu under
the terms of the March 2001 agreement.
November 2004: ICC tribunal rules in favour of Shell.
November 2006: Malabu reaches a settlement with the Federal
Government of Nigeria (FGN). Malabu agrees to pay $218 million
to FGN in return for the licence being fully reinstated to
Malabu. Malabu subsequently fails to pay.
April 2007: Shell launches arbitration against the Nigerian
government for "wrongful expropriation" of its rights.
August 2007: The FGN promises compensation to Shell in the
form of a new prospecting licence in other blocks, worth the
equivalent of 50% of OPL 245. Shell rejects the offer.
December 2010: Mohammed Abacha, son of the former ruler,
launches a legal challenge arguing that Etete pushed him out of
his partial ownership of Malabu.
2010: Eni enters talks with Malabu and Shell to buy a stake
in OPL 245. Malabu turns down the Eni and Shell offers.
Nigeria's attorney general, petroleum and finance ministers and
NNPC officials work to negotiate a settlement.
April 29, 2011: Malabu, Shell, Eni and FGN reach a
resolution agreement. Malabu agrees to hand OPL 245 back to the
government for $1.092 billion. In parallel, Shell and Eni agree
to pay the government $1.092 billion plus a signature bonus of
$208 million, taking their payment for OPL 245 to $1.3 billion.
May 20, 2011: The $1.092 billion is placed in an escrow
account opened by the Nigerian government with U.S. bank JP
Morgan. In August, $875 million is transferred to bank accounts
in the name of Malabu.
2011: Key issues related to OPL 245 emerge in two civil
suits https://www.reuters.com/article/eni-shell-nigeria-corruption/rpt-dont-neglect-to-pay-the-middleman-how-shell-and-eni-ended-up-on-trial-idUSL5N1SS0JM
filed soon after the 2011 deal by a Nigerian and a former
Russian diplomat who say they were owed millions of dollars by
Malabu for arranging meetings with Shell and Eni.
2014: Nigeria's House of Representatives votes to cancel the
OPL 245 deal, calling it contrary to the laws of Nigeria.
2014: Eni is told Milan prosecutors are investigating the
company and managers, including Descalzi, for alleged corruption
over OPL 245. The inquiry is wrapped up on Dec. 22, 2016.
February 2016: A Dutch anti-fraud team raids Shell's
headquarters in The Hague as part of its investigation into the
OPL 245 deal.
Decemeber 2017: The Federal Republic of Nigeria files a case
at London's High Court against U.S. bank JP Morgan
alleging negligence for its role in transferring the $875
million to Etete's Malabu. JP Morgan has said it considers the
allegations "unsubstantiated and without merit".
May 2018: The main trial in Milan starts. Descalzi, former
Shell exploration chief Malcolm Brinded and 11 other defendants,
as well as the two companies, are accused by prosecutors of
paying bribes to secure OPL 245. All deny wrongdoing.
September 2018: As part of the Milan trial, Emeka Obi and
Italian Gianluca Di Nardo, two middlemen in the OPL 245 case,
are found guilty https://www.reuters.com/article/us-shell-eni-nigeria-trial-idUSKCN1M01Z7
of international corruption and each given four-year jail
sentences. Obi and Di Nardo appeal.
March 2019: Dutch prosecutors say they are preparing
criminal charges against Shell over OPL 245.
April 2019: A Nigerian judge issues arrest warrants for Dan
Etete, another former minister and an Eni manager over the sale
of OPL 245
July 2020: Italian prosecutors ask a Milan court to fine Eni
and Shell 900,000 euros ($1.1 million) each and some current and
former executives, including Descalzi, to be jailed. They also
ask that $1.092 billion, the equivalent of the alleged bribes,
be confiscated from all the defendants.
October 2020: Descalzi's lawyer tells a Milan court he
should be acquitted of corruption in the OPL 245 case since
there is no evidence to support the charges.
November 2020: A London judge rules that the Nigerian
lawsuit against JP Morgan can go to a six-week trial at the
first available date after Nov. 1, 2021.
March 17, 2021: Milan court acquits all the defendants in
the Italian trial.
($1 = 0.8402 euros)
(Compiled by Ron Bousso and Shadia Nasralla; Editing by David
Clarke)
