The British-Dutch oil and gas company, Royal Dutch Shell plc or Shell for short, is now facing one of the biggest corporate corruption cases in history. Dutch prosecutors are reportedly filing new criminal charges against the company for its direct involvement in the US$1.3 billion Nigerian corruption scandal. The charges against the oil giant stemmed from its purchase of an offshore oil field known as OPL 245 in 2011.
According to the Dutch Public Prosecutor's Office (DPP), Shell is already facing various cases due to OPL 245 purchase. In fact, two of its former senior executives are now facing criminal cases in Italy because of it. Shell and the Italy-based oil company, Eni, were apparently partners in the multi-billion dollar deal.
Italian prosecutors have filed charges against the executives claiming that they all had prior knowledge that a large chunk of the payment they made for OPL 245 was going to be given to corrupt Nigerian officials. According to the court documents, prosecutors had alleged that around US$1.1 billion dollars were given to the former Nigerian oil minister, Dan Etete. The official has since been convicted of money laundering and corruption.
Through the money he received, Etete allegedly bribed numerous government officials in an attempt to broker a deal in Shell's favor. Some of the money was also reportedly spent on luxury items such as armored SUVs, private jets, art, and other luxury goods. The Nigerian government has also filled its own case against Shell and Eni, claiming that companies had spent hundreds of millions of dollars on bribes and kickbacks.
The government is also claiming that it has lost more than US$6 billion in potential revenue because of the signed agreements that were clearly in the companies' favor. A class action lawsuit has also been filed by residents living near the offshore oil field, claiming that the company's pipelines have caused massive environmental damage to the area.
Despite the evidence that has been presented, including statements from the banks used in the various transactions, Shell still claims that it believes there isn't a real case against it. The company did admit in 2017 that it knew about Etete's involvement in the OPL 245 purchase. According to the case filed against Shell, Etete apparently controlled the company that held the rights to the offshore oil field that was sold to Shell and Eni in 2011. Shell alleged that it sent the payment directly to the Nigerian government. However, it was later found out that the payments were sent to the Etete's Malabu Oil and Gas Company instead.
