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By Julia Payne
LONDON, Nov 12 (Reuters) - A lawsuit launched by the
Nigerian government against U.S. bank JP Morgan Chase, claiming
over $1.7 billion for its role in a disputed 2011 oilfield
deal, will proceed to trial, London's high court ruled on
Thursday.
The suit filed in the English courts in 2017 relates to the
purchase of the offshore OPL 245 oilfield in Nigeria by oil
majors Royal Dutch Shell and Eni in 2011,
which is the subject of an ongoing trial in Milan.
The six-week London trial will start on the first available
date after Nov. 1 next year, meaning that proceedings may not
begin until 2022.
JP Morgan declined to comment.
Central to the case is a $1.3 billion payment from Shell and
Eni to secure the block that was deposited into a Nigerian
government escrow account managed by JP Morgan.
As part of the proceedings, JP Morgan will also have to
disclose within 21 days which individuals at the bank made the
final decision to transfer the funds in question.
"Nigeria is pleased that JP Morgan has agreed it will now
confirm all the senior figures at the bank who were involved," a
spokesman for the Nigerian government on this case said.
"This claim will move forward and Nigeria will hold JP
Morgan accountable for its central role in the OPL 245 fraud."
In the claim, Nigeria alleges JP Morgan was negligent in its
decision to transfer the funds in escrow to a company controlled
by the country's former oil minister Dan Etete instead of
government coffers.
The damages sought include the monies allegedly sent to
Etete, around $875 million paid out in three instalments, plus
interest taking the total to $1.7 billion.
The decision is also likely to compel the bank to disclose
details of its internal processes. JP Morgan sought to quash the
case last year.
The Milan trial began in 2018. In July 2020, Italian
prosecutors asked a Milan court for Eni and Shell to be fined
and some of their present and former executives, including Eni
CEO Claudio Descalzi, to be jailed.
They further requested Eni and Shell to be fined 900,000
euros ($1.06 million) each and sought to confiscate a total of
$1.092 billion from all the defendants in the case, the
equivalent of the bribes alleged to have been paid.
Shell and Eni and the managers accused in the Milan court
case, including Eni CEO Claudio Descalzi, have all denied any
wrongdoing.
Final defence arguments from lawyers representing Shell, Eni
and its executives are being made to the court. The next hearing
is scheduled for Nov. 25.
A full timeline of the legal cases surrounding the oilfield
deal can be found here:
($1 = 0.8481 euros)
(Reporting by Julia Payne; editing by Barbara Lewis)
