Economy
US Seeks Reopening Nigeria’s Controversial OPL 245 Case Against Shell, Eni
By Adedapo Adesanya
The United States is pushing for the reopening of an investigation against multinational oil companies Shell and Eni in Nigeria regarding their 2011 purchase of the rights to the controversial Oil Prospecting License (OPL) 245.
OPL 245 is regarded as one of Nigeria’s most lucrative oilfields and has seen a fierce battle over it and it appears the issue might not be over as the US House of Representatives through the Foreign Corrupt Practices Act (FCPA) wants to stir the waters again.
In a petition to Mr Merrick Garland, Attorney General of the US, the lower house is urging the reopening of the investigation by the Department of Justice (DOJ).
The House stated that “available evidence implicates both companies in a scheme that resulted in the payment of $1.1 billion in bribes to Nigerian government officials, including then-President Goodluck Jonathan”.
“Shell and Eni, both registered with the U.S. Securities and Exchange Commission (SEC) continue to profit from the deal in violation of the FCPA,” read the letter dated May 8, 2024 and signed by Representative Maxine Waters of the Committee on Financial Services, and Representative Joyce Beatty of the Subcommittee on National Security, Illicit Finance, and International Financial Institutions
The House maintained, in the letter, that “allegations of corruption surrounding OPL 245 began in 1998, when Dan Etete, a convicted money launderer and Nigeria’s former Oil Minister during the military dictatorship of General Sani Abacha, awarded the OPL 245 license to Malabu Oil and Gas, a company whose principal shareholders were revealed to be Etete himself and the son of General Abacha”.
The rights to OPL 245, according to the petition from Congress, continued to be marred with corruption and in 2000, Malabu’s share registry was changed to reflect a 505 shareholding by Pecos Energy, a company secretly controlled by then-President Olusegun Obasanjo and his Vice President, Mr Atiku Abubakar.
The letter stated that Malabu’s license was revoked in 2001 but restored in 2006, with evidence suggesting that bribes were paid to then-Attorney General, Mr Bayo Ojo, who played a key role in that decision.
The House alleged that Shell and Eni then purchased the license from Malabu in 2011 for $1.3 billion with the knowledge that a portion of the proceeds would be used to bribe numerous Nigerian officials. It added that hundreds of millions of Dollars passed through various Nigerian shell companies linked to Mr Aliyu Abubakar, a scandalous businessman.
“Then-President Goodluck Jonathan was said to have pocketed some $200 million from the sale, and the former Attorney General involved in the 2006 reinstatement of Malabu’s license also purportedly received a sizeable payout
“Other funds would later be traced to the purchase of real estate in the US, Dubai, Brazil, and Switzerland, as well as luxury vehicles and gems,” the House petition also read.
In further urging the re-opening of the case, the House stated that the harm to the Nigerian people would continue to be felt beyond the immediate payment of bribes, with experts alleging that the country lost $6 billion in estimated future revenue – double the size of Nigeria’s annual health and education budget.
According to the petition, in 2013, there was sufficient evidence for the Federal Bureau of Investigation (FBI) and the money laundering investigation into the deal, which was followed by an FCPA investigation. In 2019, the DOJ notified Eni that the US had closed the inquiries in light of Italy’s prosecution of the case, yet it noted that the file could be reopened if circumstances changed.
The House noted that Shell and Eni were subsequently acquitted by the Italian court yet the companies “continue to profit from their exploitation of the OPL 245 deal.”
“The United States has consistently demonstrated global leadership in the fight against foreign bribery, with the FCPA swerving as model legislation for countries around the world.
“The reopening of the case would further illustrate the US commitment “to aggressively pursue foreign bribery cases,” as stated in the U.S. Strategy on Countering Corruption and reaffirm its pledge to fully implement the OECD Anti-Bribery Convention.
“We urge you to leverage this portent anti-corruption law to address the issues in the case and to send a powerful message that the United States stands vigilant in its pursuit of corporate crime around the globe,” the House petition to the Attorney General further read.
By Modupe Gbadeyanka
The management of Dangote Petroleum Refinery and Petrochemicals Limited has revealed that the price of Premium Motor Spirit (PMS) remains at N1,275 per litre.
Earlier on Wednesday, there were reports that the company increased its ex‑depot price by N75, some hours after renewed hostilities in the Middle East.
On Monday evening, it was reported that Iran fired missiles at its neighbours in the Gulf region after the United States seized two Iranian-linked vessels on the Strait of Hormuz.
These actions briefly raised the price of crude oil on the global market to over $115 per barrel, but it quickly eased to almost $100 per barrel on Wednesday.
Shortly after it was reported that Dangote Refinery had pushed its PMS gantry price to N1,350 per litre, the price was reversed.
Confirming this in a statement made available to Business Post, Dangote Refinery said it is sustaining its current prices to reaffirm “its commitment to supporting stability in the domestic energy market and cushioning the wider economy against external shocks.”
“By absorbing prevailing cost pressures, the refinery continues to help moderate inflationary risks, promote energy affordability, and ensure uninterrupted supply amid ongoing global uncertainties,” another part of the statement read.
The private refiner “reaffirmed its dedication to the steady supply of high‑quality petroleum products to the Nigerian market, while supporting national objectives of price stability and energy security.”
It urged the public “to rely solely on official statements from Dangote Petroleum Refinery and Petrochemicals Limited for accurate and up‑to‑date information on its operations and pricing.”
By Aduragbemi Omiyale
Dangote Refinery has reversed a N75 ex-depot price increase of premium motor spirit (PMS), also known as petrol, on Wednesday.
On Wednesday, the private crude oil refinery raised the price of the product to N1,350 per litre, but this was quickly reversed to N1,275 per litre.
The company had carried out a second increment in less than two weeks, amid renewed attacks in the Middle East, though the crude oil price went down on Tuesday to $109 per barrel.
According to a report by pricing platform Petroleumprice.ng, the upward price adjustment was suspended shortly after it was raised, restoring the previous pricing structure at the loading gantry and easing immediate concerns among downstream marketers.
Industry operators say the move has helped calm nerves across the market, where traders had already begun repositioning on expectations of a higher pricing cycle.
Before the previous price hike, the gantry price was N1,200 per litre, but the organisation pushed it higher by N75.
As of the time of filing this report, Business Post observed that Brent crude futures were traded at $101.00 per barrel, while the US West Texas Intermediate (WTI) crude futures were sold for $93.01 per barrel.
By Adedapo Adesanya
Four securities lifted the NASD Over-the-Counter (OTC) Securities Exchange by 0.85 per cent on Tuesday, May 5, with the market capitalisation growing by N20.52 billion to N2.429 trillion from N2.409 trillion, and the Unlisted Security Index (NSI) advancing by 34.30 points to 4,060.94 points from 4,026.64 points.
Yesterday, FrieslandCampina Wamco Nigeria Plc, the parent company of popular milk brands like Peak Milk and Three Crowns, appreciated by N8.72 to N106.90 per share from N98.14 per share, NASD Plc increased its value by N6.13 to N37.36 per unit from N31.23 per unit, Lagos Building Investment Company (LBIC) Plc gained 35 Kobo to close at N3.82 per share versus N3.47 per share, and Geo-Fluids Plc jumped by 10 Kobo to N3.10 per unit versus N3.00 per unit.
However, the price of Food Concepts Plc, which has the popular Chicken Republic under its belt, lost 5 Kobo during the session to trade at N2.36 per share versus N2.41 per share.
The volume of securities traded fell by 9.5 per cent to 679,768 units from 751,518 units, and the value of securities dropped 12.6 per cent to N30.9 million from N35.4 million, while the number of deals surged by 41.9 per cent to 44 deals from 31 deals.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis with 3.4 billion units transacted for N8.4 billion, followed by CSCS Plc with 60.3 million units traded for N4.1 billion, and Okitipupa Plc with 27.8 million units valued at N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units sold for N8.4 billion, trailed by Resourcery Plc with 1.1 billion units worth N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units exchanged for N1.2 billion.
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