The federal government of Nigeria has withdrawn its $1.1 billion lawsuit against Shell Plc related to the oil prospecting licence (OPL) 245 deal.
The government’s decision to end civil proceedings before Italy’s highest court was confirmed by a Shell spokesperson, who stated that they were pleased with the withdrawal of the claim.
Eni SpA, Shell’s partner in the field, had also received a letter from the government. The letter confirmed the unconditional withdrawal of the claims.
The lawsuit alleged corruption in connection to the OPL 245 deal, a significant oil and gas project in Nigeria.
“It brings to an end to all legal cases against Shell on OPL 245 in Italian courts.”
THE OPL 245 SAGA
The OPL 245 saga involves the oil prospecting licence for OPL 245, an oil block in the Niger Delta area of Nigeria.
The dispute over ownership and control of OPL 245 has a complex history. The history involves legal battles, government decisions, and allegations of corruption.
The oil block was initially awarded to Malabu Oil and Gas Ltd in 1998, owned mainly by Mohammed Abacha and Dan Etete.
Subsequently, there were changes in ownership, legal disputes, and government interventions.
A brief timeline of key events in the OPL 245 saga:
1998: OPL 245 awarded to Malabu Oil and Gas Ltd.
2001: President Olusegun Obasanjo revokes Malabu’s licence, and assigns the oil block to Shell without a public bid.
2006: Ownership reverted to Malabu after an out-of-court settlement with the federal government.
2010: President Goodluck Jonathan implements a consent judgment, returning the oil block to Malabu.
2011: Shell and Eni agreed to buy OPL 245 from Malabu for $1.1 billion; $210 million was paid as a signature bonus to the federal government.
2015: President Muhammadu Buhari’s administration initiates litigation against Shell and Eni, alleging corruption.
2020: UK court declines jurisdiction in a case filed by Nigeria against Shell and Eni.
2021: Italian court acquits Shell, Eni, and all defendants of corruption charges.
2022: Nigeria loses a $1.7 billion claim against JP Morgan Bank over the transfers of proceeds from the OPL 245 sale.
While international investigations and legal proceedings have not conclusively proven corruption or fraud, the Nigerian government continues to prosecute cases against Shell and Eni in Nigerian courts.
Additionally, former Attorney General Mohammed Bello Adoke faces charges related to the OPL 245 agreements, with ongoing legal proceedings in Nigerian courts.