Eni acquisition of Nigerian stake probed

Sept. 11, 2014
Eni said it is cooperating with authorities in Milan investigating its 2011 acquisition of an interest in a block offshore Nigeria from a Shell subsidiary.

Eni SPA said it is cooperating with authorities in Milan investigating its 2011 acquisition of an interest in a block offshore Nigeria from a Royal Dutch Shell PLC subsidiary.

The investigation concerns the acquisition by Eni unit Nigerian Agip Exploration (NAE) of a 50% interest in OPL 245 from Shell Nigeria E&P Co. NAE became operator of the license, where it is appraising deepwater Zabazaba oil field. The Shell unit retained a 50% interest.

Eni denied illegal conduct in the acquisition, saying it entered into related agreements only with the Nigerian government and Shell.

“The entire payment for the issuance of the license to Eni and Shell was made uniquely to the Nigerian government,” Eni said in a statement.

It said Chief Executive Officer Claudio Descalzi and Chief Development, Operations, and Technology Officer R. Casula are under preliminary investigation by the Milan prosecutor’s office.