The Federal Government has ended a protracted legal battle in Italian courts over accusations of corruption in an oil field sale by finalizing arrangements to abandon civil proceedings against Eni SpA totaling $1.1 billion.
According to a letter reviewed by Bloomberg, the Ministry of Justice will, no later than November 17, waive the claims before Italy’s highest court “unconditionally” and “with immediate effect.”
Bloomberg further reported that the county has “irrevocably” given up any right to pursue additional legal action in Italy against Eni, its affiliates, and its officers, both past and present, over the field’s rights, which are known as Oil Prospecting Licence 245, or OPL 245.
Eni issued a statement confirming that it had received the letter and indicating that it was prepared to discuss with the Nigerian government the necessary actions to convert the prospective license into one that would permit the development of the oil block.
A number of court cases and conflicting legal claims have put an end to operations at the country’s oil block for more than ten years.
Eni estimates that the area has recoverable reserves of 560 million barrels, making it possibly one of the richest concessions in the country.
The outcome of such claims, including as those brought by Eni in arbitration proceedings at the World Bank’s International Centre for Settlement of Investment Disputes and litigation in Nigeria, may determine whether Eni and its partner Shell Plc can eventually start developing OPL 245.
In a criminal prosecution in Milan last year, Eni, Shell, and a few of their current and former management were found not guilty beyond a reasonable doubt of knowing that a large portion of the $1.1 billion they paid to purchase OPL 245 would be used as bribes.
Even after that decision, a civil lawsuit went on, with Nigeria suing Eni and Shell for a total of $3.5 billion, arguing that this sum accurately represented the license that the two businesses had bought in 2011.
