Shell Denies it Knew About Illegal OPL 245 Payments

Anglo-Dutch major Shell has denied that its former top executives, including its group CEO at the time Peter Voser, knew that money paid to the Nigerian government for the OPL 245 oil block would be passed to convicted money-launderer and former oil minister Dan Etete.

A report by BBC April 10 said that emails obtained by anti-corruption charities Global Witness and Finance Uncovered show that Shell representatives were negotiating with Etete for a year before the $1.1bn deal was finalised in 2011. 

The BBC report can be seen here and Global Witness’s April 10 report here. 

Global Witness says on April 20 a court in Milan will begin hearings on whether Shell, Eni and Etete will face trial for international bribery, along with Eni’s current and former CEOs. Separate proceedings are being brought against Nigeria’s Aliyu Abubakar and four senior Shell employees from the time of the deal: Malcolm Brinded, Peter Robinson, John Copleston and Guy Colegate.

Copleston and Colegate are two Shell representatives who the Milan public prosecutor said “previously worked for M16”, the British security service, said the Global Witness report. Emails shown by Global Witness are between either Copleston or Colegate and Shell Africa representatives. 

Shell has denied its officials did anything wrong. It told NGW April 10: “Given this matter is currently under investigation, it would be inappropriate to comment on specifics. However, based on our review of the prosecutor of Milan's file and all of the information and facts available to Shell, we do not believe that there is a basis to prosecute Shell. Furthermore, we are not aware of any evidence to support a case against any former or current Shell employee. If the evidence ultimately proves that improper payments were made by Malabu or others to then current government officials in exchange for improper conduct relating to the 2011 settlement of the long-standing legal disputes, it is Shell’s position that none of those payments were made with its knowledge, authorization or on its behalf.

"We are taking this matter seriously and are fully co-operating with the relevant authorities. This includes when appropriate having shared the key findings of an investigation led by Debevoise & Plimpton LLP, an independent international law firm," it said.

A Nigerian court on March 17 returned OPL 245 to Shell and Eni, reversing an earlier decision to rescind their licence.

Mark Smedley