Undeclared crude: FG closes case in $110m suit against Agip

The Federal Government on Tuesday closed its case in the suit it
filed to recover a sum of $110m from Nigeria Agip Oil Company
Limited.

In the suit filed before the Federal High Court in Lagos, the
Federal Government accused the oil giant of under-declaring the
volume of crude oil it shipped out of the country between January
2011 and December 2014.

The FG alleged that Agip short-changed it to the tune of
$55m.

The government is praying the court to compel the oil firm to
pay the $55m with an annual interest of 21 per cent.

It also wants the court to award another $55m against Agip as
exemplary damages.

The legal battle has been on before Justice Mojisola Olatoregun
since late 2016.

On Tuesday, the Federal Government, being represented by Prof
Fabian Ajogwu (SAN), closed its case.

Justice Olatoregun adjourned till Wednesday (today) for Agip to
open its defence.

Similar lawsuits were filed against Total E&P Nigeria Plc
and Chevron Nigeria Limited by the Federal Government.

In the case of Total, FG sought to recover $245,258,640, “being
the total value of the missing revenues from the shortfall
under-declared/undeclared crude oil shipments of the Federal
Government of Nigeria.”

The Federal Government sought another $245,258,640 as general
damages.

The government said the lawsuits followed a forensic analysis
linking the decline in crude oil export and government revenue at
the time to the alleged under-declaration of the volume of crude
oil shipped out of the country by the oil companies.

The Federal Government claimed to have uncovered the alleged
illegality using high-technology Information Technology system,
including satellite tracking systems, which were deployed by its
consultants.

The statements of claims were backed up with supporting
affidavits deposed to by three United States of America-based
experts – Prof David Olowokere, a US citizen and Lead Analyst at
Loumos Group LLC, US; Jerome Stanley, a lawyer in the law firm of
Henchy & Hackenberg; and Micheal Kanko, founder and Chief Executive
Officer, Trade Data Services Company, State of Arizona, US.

The deponents said about 57 million barrels of crude oil were
allegedly illegally exported by Total and sold to buyers in the US
between January 2011 and December 2014 without making due
remittance to the Federal Government.