• 7 minutes Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 11 minutes Oil prices going down
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 18 hours 67.50 was the low for now, $70 - $76+ back in play
  • 17 hours EU And Japan Sign Historic Free Trade Deal
  • 16 hours Where 3 Million Electric Vehicle Batteries Will Go When They Retire?
  • 16 hours Daimler and BMW Will Beat Tesla in EV Race
  • 1 day Chartist predicting a $1 fall, after WTI drops $10
  • 21 hours Germany: We Can No Longer Fully Rely On U.S. White House
  • 17 hours China’s Technology Sector Takes On Silicon Valley
  • 10 hours Chile Becomes The Latest Country To Commit To 100% Renewables
  • 2 days Well from $74 we hit 67.xx now what?
  • 21 hours Trump-Putin Helsinki Summit And Oil Prices
  • 1 day Rio Tinto Says $4-Million Goodbye to Coal
  • 2 days Trade War of 1930s, Extended the Great Depression
  • 2 days Kaplan Says Rising Oil Prices Won't Hurt US Economy
  • 17 hours Trump mulling releasing 5 to 30 Mill Barrels
This Oil Price Crash Was Just A Correction

This Oil Price Crash Was Just A Correction

While oil prices may have…

Nigeria Files Suit Against JP Morgan Over Oil Field Sale

Shell

Nigeria has filed a lawsuit against JPMorgan, accusing the investment bank of transferring most of the money that Shell and Eni paid for the acquisition of the infamous block OPL 245 to accounts held by a company controlled by then-energy minister Dan Etete.

The suit is part of what is turning into a veritable legal saga around the offshore field. Shell and Eni bought it for US$1.3 billion from a company named Malabu Oil and Gas back in 2011. The company turned out to have been controlled by former minister Etete, and last year Italian prosecutors said the two oil majors will stand trial for bribing Etete to get a better price for the field.

Now, the Nigerian state is alleging that JPMorgan had an instrumental role in the affair. According to the suit, the US$1.3 billion payment was deposited by the buyers in an escrow account that JPMorgan managed. Then, the bank transferred over US$800 million to several accounts in the name of Malabu Oil and Gas. The sum eventually ended up in two accounts controlled by Etete himself.

According to the suit, the bank acted in gross negligence by failing to conduct due diligence to make sure the money stays in accounts controlled by the government. The filing, with a London court, says, “If the defendant acted with reasonable care and skill and/or conducted reasonable due diligence it would or should have known or at least suspected ... that it was being asked to transfer funds to third parties who were seeking to misappropriate the funds from the claimant and/or that there was a significant risk that this was the case.”

Like Shell and Eni, JPMorgan has denied any wrongdoing, with a spokeswoman telling Reuters that the bank, “considers the allegations made in the claim to be unsubstantiated and without merit”.

The oil companies will stand trial later this year, while in the meantime there are two ongoing investigations into the infamous deal, one in Nigeria, and one in the Netherlands, Shell’s home country.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News