President insists on $1.04b Malabu Oil suspects trial

The controversy over the Malabu Oil Block(OPL 245) won’t just go
away, with President Muhammadu Buhari rejecting Attorney-General
Abubakar Malami’s proposal on how to resolve the impasse.

Buhari is insisting on the continuation of the criminal
proceedings against some suspects implicated in the OPL 245
scandal.

The President has also directed the Minister of State for
Petroleum Resources, Dr. Ibe Kachikwu,  and the Department of
Petroleum Resources to stay action on the development of the oil
well.

The OPL245 is  an offshore oil block with about nine
billion barrels of crude. It was auctioned for $1.3 billion (1.1
billion euros).

Although the Federal Government received only $210 million as
Signature Bonus, about $1.092 billion was traced to a London bank
account.

The cash was suspected to be slush funds allegedly used to bribe
some middle men and politicians.

A former President is accused of benefiting about $200 million
from the deal.

But there are concerns that the controversy over Malabu oil
block has been lingering since 2001 (17 years) and there is need to
resolve it.

The AGF on September 17, 2018 advised the President  on
four issues related to the oil block.

The  AGF’s advised:

• discontinuation of the civil case on OPL 245 in a Milan, Italy
  court  and payment of the counsel hired by the Federal
  Government for his services;
• discontinuation of all criminal matters in Nigeria in
  connection with the oil block;
• A recommendation to the President to allow the relevant
  agencies to sign Heads of Agreement with Eni and Shell; and
• Minister of State for Petroleum Resources and the Department of
  Petroleum Resources(DPR) be mandated to begin the process of using
  the well.

There are cases on Malabu oil block against former Petroleum
Resources Minister Dan Etete,  former Attorney-General of the
Federation Bello Adoke (SAN),  former Minister of Petroleum
Resources, Mrs. Diezani Alison-Madueke, some businessmen and top
officials of Eni and Shell.

A source quoted the AGF as saying “there was nothing in the
proof of evidence to support the charge of money laundering against
suspects and it is therefore impossible for the prosecution to
prove the elements, which include illicit funds, transfer for such
through various channels to re-introduce same again into the
regular financial system as legitimate funds in financial
institutions etc.”

“He wanted the Federal Government to pursue Nigeria’s
possible investment in the disputed oil blocks rather than trying
to repossess it or prosecute former Nigerian government officials
or Shell or Agip-Eni chiefs involved in the deal.

“He said the Public Officers Protection Act CAP P41 Laws of
the Federation of Nigeria, 2004 limits liability of Public Officers
to a period of three months much naturally come to mind,
considering their claim that the acts which are complained of were
authorised by the three presidents before this current
administration.”

In an October 29, 2018 response, President Buhari, in a memo
through his Chief of Staff, Abba Kyari, rejected the
Attorney-General of the Federation’s proposals on the fate of OPL
245.

A highly-placed source in the Presidency said: “The position of
the President is that the law must run its full course on the
controversy surrounding Malabu Oil Block.

“The position of the President is that there was no way the
government would discontinue all the cases in court when a Milan
judge on September 20, 2018 has already sentenced two men
– a Nigerian, Emeka Obi, and an Italian,  Gianluca Di Nardo –
to a four-year prison term. They were both negotiators during the
sale of controversial OPL 245.

”They were jailed in respect of alleged international corruption
case involving oil giants Eni and Shell on OPL 245. In fact,
while  the court asked Obi to forfeit $98.4 million, Dino lost
21 million Swiss francs ($21.8 million, 18.6 million euros) in
fines.

“The decision of the President is that the anti-graft agency,
especially the Economic and Financial Crimes Commission (EFCC)
should sustain its investigation of the Malabu deal in the light of
development from Milan Court.

“He has also insisted that all those facing criminal charges in
Nigeria on OPL 245 should be allowed to clear their names once and
for all. Buhari believes the probe is not targeted at any Nigerian
or multi-national firm but it is better to get to the root of the
deal.

“If you review the development in Milan, you will realise that
there must be more to Malabu Oil Block. How can there be
convictions in Italy and we have to discontinue the cases in
Nigeria?

“Do not forget that the  Federal Government has seized
Malabu Oil Block from four oil giants pending the conclusion of
investigation and trial of those implicated in the $1.09billion
deal. The oil firms are Shell Nigeria Ultra Deep Limited, Shell
Nigeria Exploration and Production Company Limited (SNEPCO),
Nigeria Agip Exploration Limited, Malabu Oil and Gas Limited.

“Also, the President rejected advice to go ahead with Heads of
Agreement with Eni and Shell and a recommendation to mandate the
Minister of State for Petroleum Resources, Ibe Kachikwu and DPR to
put the block into use. He said all issues must be resolved.”

The EFCC  on  December 20, 2016 filed nine charges
bordering on alleged mismanagement of over $1b Malabu Oil cash
against Etete, Adoke, a businessman, Aliyu Abubakar, Malabu Oil and
Gas Limited; Rocky  Top Resources Limited; Imperial Union
Limited; Novel Properties and Development Company Limited, Group
Construction Limited and Megatech Engineering Limited.

The nine-count charge was filed  at the Federal High Court,
Abuja.

In another charge, the EFCC sued  Etete, Adoke, Abubakar
and eight others over alleged $801million bribe in respect of the
auctioning of Malabu Oil Block.

The others are: Shell Nigeria Exploration Production Company
Limited;  Nigeria Agip  Exploration Limited; ENI SPA;
Malabu Oil and Gas Limited; Ralph Wetzels(ex- Director of SNEPCO),
Casula Roberto(Italian) whilst being the Director of AGIP; Pujatti
Stefeno(Italian) while being the Director in AGIP; and Burafato
Sebastiano(Italian).

All the suspects have denied the charges.

Malabu was issued a licence for OPL 245 on 9th
April 2001 but the Federal Government subsequently revoked
the licence on 2nd July 2001.

Following the revocation, Exxon-Mobil and Shell were then
invited in April 2002 to bid for the same OPL 245 as contractors on
a Production Sharing Contract (PSC) with the Nigerian National
Petroleum Corporation (NNPC), despite the existence of subsisting
contractual agreements between Malabu and SNUD with
respect to OPL 245.

But Malabu faulted  the revocation of
its licence on Block 245.

It alleged that the revocation was “less than transparent and
smacked of inducement and connivance from SNUD”, which at the
material time was its technical partner. It was also contended
by Malabu that the subsequent re-award of OPL 245 to SNUD
by the FGN was done under questionable circumstances.

Based on Malabu’s petition, the House of Representatives
Committee on Petroleum  also found   “no rational basis
for the revocation”  and reprimanded Shell for its
“complicity”.

The Committee also directed the Federal Government to withdraw
the re-award to Shell and return OPL 245 to Malabu, the
original allotee of the Block.

Malabu later instituted a suit before the Federal High
Court (FHC), Abuja against the Federal Government of Nigeria to
enforce its claim to OPL 245.

Although the suit was struck out by the
FHC, Malabu proceeded to lodge Appeal No. CA/A/99M/2006,
before the Court of Appeal, Abuja, Division in 2006.

According to records, it was during the pendency of the Appeal
that a settlement hereof was executed as a consideration for
withdrawal of the Appeal by Malabu.

A memo said: “That consequent upon Exhibit 2, the then Minister
of State for Petroleum, Dr. Edmund Daukoru, communicated the
restoration of the OPL 245 to Malabu vide letter dated
2nd December 2006.

“That following  Malabu was expected to pay the new
signature bonus in the sum of US$210,000,000 less the
$2,000,000,00 it had previously
paid. Malabu accordingly released the FGN from liability
on account of the actions taken in respect OPL 245.”

Earlier, a Settlement Agreement signed by a former Minister of
State for Petroleum Resources, Dr. Edmund Daukoru  (for the
Federal Government) and Malabu Oil and Gas Limited officials, in
the presence of Anthony G. Ikoli (SAN) was reached on November
30th, 2006.

The agreement said: “IT IS HEREBY AGREED AS FOLLOWS: In the
spirit of amicable settlement and without any admission of
liability for any alleged wrongful, unlawful, unjust or any like
conduct, the FGN agrees to re-allocate the oil block known as and
covered by Oil Prospecting Licence 245 (herein called OPL 245) to
Malabu within 30 days of this Agreement.

“The Signature Bonus in respect of OPL 245 shall be the sum of
US$210million payable by Malabu to the FGN. In this regard, the FGN
acknowledges that Malabu had hitherto paid the sum of $2,040,000 to
the FGN in respect of this Oil Block which sum shall be deducted
from the aforesaid Signature Bonus leaving a balance of US$207,
960,000 to be paid by Malabu to the FGN within 12 months from the
date of reinstatement of OPL 245 to Malabu.

“The parties agree that Malabu shall, if it so desires, be at
liberty to assign OPL 245 or any part thereof in accordance with
the provisions of the Petroleum Act.

“Pursuant  to this Agreement  and in consideration of
the foregoing, Malabu hereby forever and absolutely discharges and
releases the FGN, its officers, agents, agencies and Privies
howsoever described or any person acting for and or on its behalf
from all claims or demands which Malabu has or may have, and from
all actions, proceedings, obligations, liabilities, losses and
damages brought, made, incurred, sustained or suffered by Malabu
now or in the future relating to, arising from or howsoever
connected with the withdrawal or revocation by the FGBN from Malabu
of OPL 245.

“Immediately upon the execution of this Agreement, Malabu shall
withdraw. Discontinue and terminate its Appeal No. CA/A/99/M/06 now
pending against the FGN and its Agencies at the Court of Appeal,
Abuja. Malabu shall cause the requisite evidence of this
withdrawal/ discontinuance to the solicitors to be delivered to the
FGN within 72 hours of the same being withdrawn or
discontinued.”

In a July 2nd 2010 letter to the Managing Director of
Malabu Oil and Gas Limited, another former Minister of Petroleum
Resources,  Diezani Alison-Madueke asked the company to pay
US$210million as signature bonus.

The letter, ICSID Case No. ARE/07/18, said: “Further to the
Settlement Agreement between the Federal Government of Nigeria and
Malabu Oil and Gas Ltd dated   November 2006, your
company is hereby allocated OPI 245 subject to the payment of the
sum of US$210million as signature bonus into the Federal Government
designated Account less the sum of US$2,040,000 already paid by
your company in respect of the said block within ninety days (90
days) from the date of receipt of this letter.

“Please note that failure to pay the above mentioned within the
stipulated period will amount to forfeiture of the allocation
without further notice from the office.

“Please accept the assurance of my highest regards.”

In a July 2nd 2010 letter to the Managing Director of
Malabu Oil and Gas Limited, Diezani asked the company to pay
US$210million as signature bonus.

The letter, ICSID Case No. ARE/07/18, said: “Further to the
Settlement Agreement between the Federal Government of Nigeria and
Malabu Oil and Gas Ltd dated   November 2006, your
company is hereby allocated OPI 245 subject to the payment of the
sum of US$210million as signature bonus into the Federal Government
designated Account less the sum of US$2,040,000 already paid by
your company in respect of the said block within ninety days (90
days) from the date of receipt of this letter.

“Please note that failure to pay the above mentioned within the
stipulated period will amount to forfeiture of the allocation
without further notice from the office.

“Please accept the assurance of my highest regards.”

Culled from Thenation