Eni Paid No Intermediary Bribe to Acquire OPL 245, Oil Major Insists…

Italian oil giant, Eni, yesterday reiterated that it had not paid any intermediary or bribe to acquire the controversial Oil Prospecting Lease (OPL) 245 in Nigeria.

Speaking at the group’s annual shareholders’ meeting, the company’s Chairwoman, Emma Marcegaglia, said Eni had only ever dealt with the Nigerian government.

On Wednesday, Shell admitted for the first time that it was aware that some of the payments it made to Nigeria would go to a company associated with former Nigerian oil minister, Mr. Dan Etete, who was the leading shareholder in Malabu Oil and Gas Limited.

Shell’s Vice President in charge of Global Media Relations, Mr. Andy Norman, admitted that the oil giant knew that Etete was involved in Malabu and that the Nigerian government “would compensate Malabu to settle its claim on the block.”

“Over time, it became clear to us that Etete was involved in Malabu and that the only way to resolve the impasse through a negotiated settlement was to engage with Etete and Malabu, whether we liked it or not,” Norman had said.

Norman added Shell knew that the Nigerian government “would compensate Malabu to settle its claim on the block.”

Global Witness’s latest report had also revealed that Shell’s most senior executives were told that the part of the $1.1 billion payments for OPL 245 would go to Mr. Dan Etete.

But Marcegaglia said Shell’s comments did not change Eni’s position, adding the company had not paid any money to Etete or sealed any deal with Malabu.

According to her, Eni has made no provisions for the Nigeria probe.

Also speaking at the AGM, Eni’s Chief Executive Officer, Claudio Descalzi, said in the future the group did not rule out a share buy-back programme but added for the time being he had no intention to discuss the issue with the board.

Eni had told Global Witness recently that it was not appropriate to debate the merits of the allegations as proceedings were pending.

“Eni’s filings in the pending proceeding in Milan will set forth the company’s position regarding the acquisition of OPL 245,” said Eni’s Senior Vice President for Legal Affairs Department, Marco Bollini.

Both Shell and Eni said they had commissioned separate, independent investigations.

“No illegal conduct was identified,” Eni had restated, claiming that it “concluded the transaction with the Nigerian government, without the involvement of any intermediaries”.

On its part, Shell said it had shared key findings of its OPL 245 investigation with relevant authorities and that “we do not believe that there is a basis to prosecute Shell.”

Courts in Nigeria and Italy are investigating the purchase of OPL 245 for which Eni and major Royal Dutch Shell paid $ 1.3 billion for the rights to the block in 2011.

Etete awarded the block in 1998 for $ 20 million to Malabu Oil and Gas, a company in which he was a leading shareholder.