US lawmakers are writing to the Justice Department to reinvestigate Nigeria’s $1.3 billion oilfield scandal

Two members of the US Congress are urging the Justice Department to reopen an investigation into oil giants Shell and Eni over allegations of corruption surrounding a 2011 deal for the lucrative Nigerian oil bloc Oil Prospecting License (OPL) 245.

Their call comes after Nigerian President Bola Tinubu controversially returned ownership of the oil bloc to European companies.

In a letter dated May 8, 2024 to Attorney General Merrick Garland, representatives Maxine Waters and Joyce Beatty alleged that Shell and Eni violated the Foreign Corrupt Practices Act (FCPA) by paying more than $1.1 billion in bribes to Nigerian officials, including former President Goodluck Jonathan. , to secure the OPL 245 oil rights.

“Available evidence implicates both companies in a scheme that resulted in the payment of $1.1 billion in bribes to Nigerian government officials,” lawmakers from the Financial Services and National Security Committees said.

They emphasized that U.S. law prohibits American companies from bribing foreign officials to advance their business interests.

Shell and Eni, which are registered with the SEC, “continue to benefit from the deal in violation of the FCPA,” she added.

“Eni’s legal challenge, filed with the International Center for Settlement of Investor Disputes (ICSID) and based on the corruptly obtained prospecting license and associated resolution agreement, as well as the use of the original contract in arbitration proceedings, constitutes a further violation of the FCPA.

“The ICSID proceedings are currently suspended until May 23, 2024, by agreement of the parties, indicating that a settlement is being negotiated. Allegations of further corruption in connection with a settlement have been made in the Nigerian press,” the lawmakers said.

“Shell and Eni, both registered with the US Securities and Exchange Commission (SEC), continue to benefit from the deal in violation of the FCPA.

“The reopening of this case would further illustrate the U.S. commitment to ‘aggressively pursue cases of foreign bribery’ as stated in the U.S. Anti-Corruption Strategy and would further fulfill the U.S. commitment to Reaffirm the full implementation of the OECD Bribery Convention.

“We urge you to use this strong anti-corruption law to address the problems in this case and send a strong message that the United States is vigilant in its pursuit of corporate crime around the world,” she added to.

OPL 245 is perhaps the most talked about asset in the Nigerian oil industry. It covers 1,958 square kilometers and contains more than nine billion barrels of crude oil, equivalent to almost a quarter of Nigeria’s total proven reserves.

The deal popularly referred to as the Malabu scandal involved the alleged transfer of approximately $1.1 billion by Shell and ENI through the Nigerian government to accounts controlled by a former Nigerian Minister of Petroleum, Dan Etete.

From accounts controlled by Etete, it was alleged that about half of the money ($520 million) went to accounts of companies controlled by Aliyu Abubakar, widely known in Nigeria as the owner of AA oil.

Anti-corruption investigators and activists suspect he acted for top officials of the Goodluck Jonathan government as well as officials from Shell and ENI.

The transaction was approved by Jonathan in 2011 through some of his ministers and the money was payment for OPL 245, one of Nigeria’s richest oil blocks.

The oil resources of the OPL 245 license have remained undeveloped since the start of the controversies.