Italian Court jails two prosecutors for hiding documents in $1.3 billion Eni-Shell Nigeria oil field case 

An Italian court sentenced two Milan prosecutors, Fabio De Pasquale and Sergio Spadaro, to eight months in prison on Tuesday for failing to file documents that could have supported Eni’s defense in an alleged corruption case involving a $1.3 billion oilfield in Nigeria.

The case, involving Eni and Shell, centered around the $1.3 billion acquisition of a Nigerian oilfield and was regarded as one of the energy industry’s most significant corruption trials.

The court noted that De Pasquale and Spadaro had omitted key evidence, including a video from a former Eni external lawyer that could have been favorable to the defense.

The recent verdict came from a court in Brescia, which has jurisdiction over judicial matters in Milan.

The Brescia court’s eight-month sentence aligns with the request made by prosecutors, who accused De Pasquale and Spadaro of withholding evidence that could have influenced the outcome of the Eni-Shell trial, thereby infringing on the defendants’ rights.

In response to the charges, the prosecutors’ lawyer sought a full acquittal, contending that no explicit rule mandated the filing of documents by prosecutors in such cases.

In March 2021, a Milan court acquitted Eni, Shell, and all other defendants, despite criticisms of the prosecutors’ conduct. Judges ruled that the two prosecutors had a legal duty to submit evidence that might have aided the defense. The lawyer did not offer immediate comments following the conviction.

Backstory 

In 2020, the Nigerian government filed a case against Shell/SNUD and Eni asking for compensation in the sum of $1.3 billion over an Oil Prospecting License 245, also known as OPL 245.

The case which had dragged on for over a decade came to a halt when the Ministry of Justice withdrew its petition in an Italian Court in March 2024.

Meanwhile, an international Court in Italy had already declared Shell and its affiliate partners not guilty on all counts.

Nigeria also decided to “irrevocably” suspend any future legal claims in Italy against Eni, its affiliates, as well as present and former officers concerning rights related to the field.

What you should know 

In 1998, Malabu Oil and Gas Ltd was awarded OPL 245 by the federal military government. However, in 2001, former President Olusegun Obasanjo revoked Malabu’s license and reassigned the oil block to Shell without a public bidding process.

After a protracted legal dispute, Malabu regained ownership of the block in 2006 through an out-of-court settlement with the federal government. In response to these actions, Shell initiated arbitration against Nigeria. Yet, when President Goodluck Jonathan came into office in 2010, he upheld the consent judgment, seemingly resolving the conflict.

This led to Shell and Eni reaching an agreement to purchase the oil block from Malabu for $1.1 billion. Additionally, the oil companies paid $210 million as a signature bonus to the Nigerian federal government.

However, the deal soon faced scrutiny from an international campaign, which alleged that the OPL 245 transaction was tainted by corruption, with accusations that the agreement involved bribes to Nigerian government officials.