The Nigeria Federal Government has moved to withdraw a $1.1 billion lawsuit against the oil giant, Shell Plc and its partner Eni SpA, according to Bloomberg.
Nigeria was suing the two oil companies over alleged corruption in an oil block deal known as OPL 245.
The case which had dragged on for over a decade came to a halt when the Ministry of Justice withdrew its petition in an Italian Court.
Eni SpA confirmed to Bloomberg on Thursday that it had received a letter from the government saying the claims would be withdrawn “unconditionally” by Friday.
Furthermore, Nigeria has decided to “irrevocably” suspend any future legal claims in Italy against Eni, its affiliates, as well as present and former officers concerning rights related to the field, specifically Oil Prospecting License 245, or OPL 245.
Backstory
Malabu Oil and Gas Ltd received the award for OPL 245 from the federal military government in 1998.
Meanwhile, former President Olusegun Obasanjo in 2001, cancelled Malabu’s license, transferring the oil block to Shell without a public bid.
Following a legal battle, Malabu regained ownership in 2006 through an out-of-court settlement with the federal government.
Meanwhile, in response to Nigeria’s actions, Shell entered arbitration. However, when President Goodluck Jonathan assumed office in 2010 and enforced the consent judgment, the conflict seemed settled. Subsequently, Shell and Eni reached an agreement to acquire the oil block from Malabu for $1.1 billion.
The oil companies also paid $210 million as a signature bonus to the federal government of Nigeria.
However, an international campaign was launched alleging the OPL 245 deal was marred with corruption and the deal was signed through bribery to government officials.
The Court Proceeding
In 2020, the Nigerian government filed a case against Shell/SNUD and Eni asking for compensation in the sum of $1.1 billion.
However, an international Court in Italy declared Shell and its affiliate partners not guilty on all counts.
After a series of legal battles with the oil giants and the Nigerian government, the Ministry of Justice sent a letter on Thursday to Eni SpA that the case has been withdrawn and no further legal charges will be pursued by the government, bringing the lawsuit to its final closure.
