$1.3b Malabu scandal: Corruption probe of Shell begins in Netherlands

ÎDutch investigators have visited Shell Petroleum’s headquarters in The Hague to question some of its officials as part of a multinational corruption probe relating to the company’s purchase of an oil bloc, OPL 245, off the coast of Nigeria in 2011. Shell and Italian oil giant, Eni, had reportedly agreed to secretly pay $1.3 billion to Malabu Oil and Gas through the Nigerian government in 2011, for OPL 245.

The oil bloc is one of the largest in Africa and was awarded to Malabu in 1998 when Dan Etete was the petroleum minister under the late dictator, General Sani Abacha. After Shell and Eni reportedly paid the money into Nigeria’s accounts in a London bank, the federal government allegedly transferred most of the money into Malabu accounts allegedly controlled by Mr. Etete in Nigeria.

The OPL 245 deal was already being investigated by officials in Nigeria, Italy, the UK and the U.S., before anti-graft officials in Netherlands commenced their own investigations into the scandal. The international oil company said on Wednesday it was co-operating with officials from both the Netherlands and Italy as they investigate the $1.1bn deal, which Shell signed five years ago alongside Eni, the Italian oil company. Shell said in a statement: “Representatives of the Dutch Financial Intelligence and Investigation Service and the Dutch public prosecutor recently visited Shell at its headquarters.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of longstanding disputes with the federal government of Nigeria.” Shell also confirmed it had been placed under investigation by prosecutors in Milan, saying: “Shelis fully co-operating with the Italian authorities and is looking into the allegations, which it takes seriously.”

The dispute dates back to the 2011 deal to buy block OPL 245, which has estimated reserves of 9bn barrels and is one of Nigeria’s most highly-prized oil assets. Most of the money paid by the European oil majors went to a London bank account belonging to the Nigerian government. But prosecutors are investigating whether the money then was sent to Malabu Oil and Gas. Global Witness, the anti-corruption watchdog, has alleged that the ultimate beneficiary of the transaction was Dan Etete, who was minister of petroleum in 1998 when Malabu was awarded the OPL 245 block. Mr Etete has said he was merely a consultant to Malabu.

Eni has said the “entire payment” was “made uniquely” to the Nigerian government, while Shell has said it acted in accordance with Nigerian law and the terms of the deal it struck with the government there. Claudio Descalzi, Eni’s chief executive, has been under investigation in Italy since September 2014 in connection with the allegations, but has never been charged. Eni did not comment on the latest developments in the case, but has previously denied any “illegal conduct” in the matter.