In the case of the contentious Malabu oil deal, the Government of Nigeria is seeking damages of around $ 3.5 billion from oil giants Eni and Shell.
The new claim is contained in an action against the two oil multinationals and all other parties involved in the long-running case by the Government of Nigeria in London.
The court documents also show that the Malabu Agreement is “corrupt,” not in Nigeria’s interests.
Eni, Shell, Malabu and others, among others, were charged with “fraud or / or bribery, dishonest assistance and illegal conspiracy.”
Some documents have shown that Peter Bosworth, British CEO of Arcadia Petroleum Ltd, was given money from an important figure in the scandal, and Dan Etete, Nigerian former oil minister.
New documents submitted to the Court in London have shown the Nigerian government to say that its Ministers and agents who were parties to the deal have been deprived of the disinterested of the nation, adding that officials have been operating with sinister motives and undermined the nation.
The focus of the Malabu scandal is the transfer from Nigeria’s government to Mr Etete-controlled accounts of some $ 1.1 billion by oil multinationals, Shell and ENI.
Research shows that about half the money (520 million dollars) goes to the accounts of Abubakar Aliyu, a company commonly known as the owner of the oil in AA in Nigeria, and Mr Etete, who are jointly controlled. In the presence of Goodluck Jonathan government officers and officials from Shell and ENI, Mr Aliyu suspects anti-corruption investigators and activists.
In 2011, Mr. Jonathan, through some of his cabinet ministers, allowed the transaction and paid for the block, which is regarded as one of the most lucrative in Nigeria. While Shell and ENI originally claimed that they did not know that Mr Etete and his cronies would get the money, evidence has shown that they claim to be false.
After a joint investigation by Global Witness and Finance Uncovered, Shell later admitted that he knew that the money would go to Mr Etete. Shell, Eni, Mr Etete, Mr Aliyu and several oil company officials are being prosecuted in Italy for their scandal roles.
Mr Jonathan, who has not been tested on this matter, has denied wrongdoing.
The Nigerian government claims that the block was undervalued even when it was sold in 2011, according to documents.
The block’s value, as it was about $ 3.5 billion in 2011, although it was valued at $ 1.3 billion, according to the filing. The government also claimed that in April 2011, it only received what it now believes to be an insufficient signature bonus of $ 209 million.
The government said it claims “compensatory damages for the undervalue in which the rights of OPL 245 were sold in addition or alternative.”
It added, “The amount of undervalue is going to be a matter of specifying expert evidence in due course. The FRN estimates that in April 2011, the value of OPL 245 was at least US$ 3.5 billion for which it received no or negligible value (except that the FRN will give credit for any recovery under subparagraph 2(a) above and the US$ 209 million signature bonus it received in April 2011).
‘ Furthermore, and as an alternative, ‘ the Nigerian Government also demands, ‘ an account of all past and future profits (or a declaration that the FRN — the Federal Republic of Nigeria — is entitled to all future profits) made by Shell, Eni and/or Malabu, EVP and ILCL for the unlawful exploitation of OPL 245 rights, including the amount by which they benefited from favorable terms, that they would not be entitled to.
The new claim was filed against 14 defendants, including Shell, Eni, Malabu and their respective subsidiaries, dated April 8 and signed by Jonathan Cary.
A consultant who stood as a witness at an Italian court in Milan last month faulted the oil giants, Eni and Shell’s valuation of the controversial block.
Stephen Rogers, who appeared as an expert witness for Nigeria before the court, testified to the economic cost of the 2011 OPL 245 deal. Mr Rogers is a partner with more than 30 years of experience at Hess, BP and TXU / EON in the oil consultancy group, Arthur D. Little.
Mr Roger’s analysis showed that OPL 245’s market value in 2011 was $ 3.5 billion, $ 80 per barrel of oil, and Shell and Eni purchased the block on terms.
Eni’s expert had rated the block higher at $ 4.5 billion, but they argued that the price paid ($ 1.3 billion) was reasonable due to different ‘ risks ‘ despite the valuation.
However, Mr Rogers criticized their position in his submission, saying that the method used by Eni’s expert is “double counting the risk discounts.”
Mr Rogers also assessed the gas value, which was not included by Eni’s expert, at $ 167 million.
Shell and Eni valued the block at $ 3.3 billion ($ 80 per barrel) and $ 3.5 billion ($ 70 per barrel) respectively in 2010 and 2011 in the run-up to the deal.
But using an average price paid per barrel in other deals made in West Africa, Mr Rogers calculated the value of OPL 245 as $ 2.6 billion – $ 3.7 billion, but said that they are definitely too low because “the terms of the 2011 deal are unusually favorable to businesses compared to other deals.”
