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Posts under ‘Africa’

Shell, Agip, Chevron tax evaders, Gov Dickson writes Buhari

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Okafor Ofiebor/Port Harcourt: 21 April 2016

The face-off between Bayelsa State government and multinational oil companies deepened on Thursday with Governor Henry Seriake Dickson, seeking the intervention of the Presidency over tax evasion, flagrant disregard of laws and non-compliance with the rules and regulations of the country.

A press statement from Bayelsa Govt House named the companies that evade tax as Shell Petroleum Company of Nigeria Limited (SPDC); Nigerian Agip Oil Company Limited (NAOC); Chevron Nigeria Limited (CNL); Consolidated Oil (CL); Conoil Producing; Brass LNG and Aiteo Energy.

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Shell eyes $700 million exit from Gabon – sources

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By Freya Berry and Ron Bousso

LONDON (Reuters) – Royal Dutch Shell <RDSa.L> is working on selling out of its onshore assets in Gabon, according to two sources familiar with the matter, seeking to refocus its African presence.

Bids are due in June for the fields, which one source estimated could be worth around $700 million (488.55 million pound). However the second person said that price indications were currently below Shell’s expectations and that no sale may occur.

“Shell continuously evaluates opportunities for our global portfolio in line with our business strategy,” a company spokesman said on Thursday.

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Shell defies order to halt production at Nigeria facility – officials

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YENAGOA, NIGERIA | BY TIFE OWOLABI: Wed Apr 20, 2016

Royal Dutch Shell has failed to halt production at the Gbaran Ubie oil and gas facility in southern Nigeria, contravening a court order for the site to be sealed and raising the prospect of legal action, state government officials said on Wednesday.

A Reuters reporter spoke to workers at the plant who also said production had continued.

A Shell (RDSa.L) spokesman declined to comment.

The facility, in the oil-rich southern Niger Delta region, supplies the Bonny liquefied natural gas (LNG) export terminal and also helps generate electricity, which is scarce in Africa’s top oil producer and most populous nation.

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Malabu Oil deal: EFCC quizzes SNEPCO boss over $1.092b settlement cash

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20 April 2016

The Economic and Financial Crimes Commission( EFCC) has quizzed the Managing Director of Shell Nigeria Exploration and Production Company Limited (SNEPCO), Mr. Bayo Bashir Ojulari over the controversial  Malabu oil block (OPL 245) deal.

The anti-graft agency is specifically seeking the whereabouts of $1,092 billion paid by SNEPCO and Nigeria Agip Exploration Limited (NAE) into an escrow account.

It was learnt that investigators were trying to determine last night whether the cash had been used  for the settlement of the dispute on the oil block or diverted elsewhere.

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NIGERIA: MAJOR GAS FACILITY WON’T BE REPAIRED UNTIL MAY

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Screen Shot 2016-03-15 at 10.34.57BY CONOR GAFFEY ON 4/18/16 AT 12:32 PM

Power outages in Nigeria are likely to persist until May as oil and gas giant Shell struggles to repair a major facility damaged by militants.

Nigeria’s Vice President Yemi Osinbajo visited the Forcados Export Terminal in the southern Delta state over the weekend. The facility, which is run by a subsidiary of Royal Dutch Shell, known as the Shell Petroleum Development Corporation, was subject to an attack in February when an underwater pipeline was hit by an explosion.

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Siemens, Mossack Fonseca and Shell

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By John Donovan

It’s interesting to note that there seem to be parallels between Siemens (mired in the Panama Papers scandal) and Shell.

A few years ago, Siemens was prosecuted for bribery, and some of their senior employees were jailed. It was suspected that some of the funds provided by Siemens for the bribes were kept by the Siemens executives involved, but lack of evidence prevented the executives involved from being prosecuted. 

The amounts involved in the Siemens cases were tiny in comparison with Shell’s OPL 245 payments, but were funnelled through Mossack Fonseca. 

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$200 Million Diverted To Italian Accounts In Malabu Scandal, Italian Sources Say

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An Italian oil company operating in Nigeria, Eni, has been found to have ‘diverted’ 200 million USD into Italy, according to Italian sources. According to Italian authorities the diversion is connected to the 2011 Malabu oil scandal involving Shell, Eni, and the Nigerian government. 

It would be recalled that OPL 245, one of the richest oil blocs in Africa, was awarded to Malabu Oil and Gas Ltd. in 1998 by former Minister of Petroleum Dan Etete from the Sani Abacha administration. The deal was authorized by former Attorney General Mohammed Adoke and former Minister for Petroleum Resources Diezani Alison-Madueke. The two have been investigated by the Economic and Financial Crimes Commission (EFCC) but have been on the run. 

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Shell investigated over $1 billion corrupt oil deal

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Screen Shot 2016-03-30 at 13.04.33Shell investigated over $1 billion corrupt oil deal

Vanessa Amaral-Rogers: 4th April 2016

Italian prosecutors have raided Shell’s offices to investigate the suspicious acquisition of a huge offshore oil field in Nigeria, writes Vanessa Amaral-Rogers. The oil block, sold by the Government for $20 million to a shell company owned by the oil minister, was later acquired for $1.1 billion by Shell and Eni.

Royal Dutch Shell, the world’s second largest oil company, and Italy’s Eni have been put under formal investigation by the Milan Public Prosecutor’s office for ‘international corruption’ offences.

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Safe sex in Nigeria

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By John Donovan

Safe Sex in Nigeria” was one of the best articles about the unfolding OPL 245 corruption scandal.  

It was published by the Economist in June 2013.

In particular, the timeline graphic at the beginning of the article shows where the blame probably lies:

Three things come from this:

(1) The machinations and intrigue go back much further than 2011

(2) ENI’s role appears to be relatively minor in comparison with that of Shell

(3) This saga dates back to the days of Phil Watts and Walter vd Vijver

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$180m Halliburton Probe: EFCC Boss, AGF In U.S.

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$180m Halliburton Probe: EFCC Boss, AGF In U.S.

Two Federal Government officials have gone to the United States for talks on President Muhammadu Buhari’s anti-corruption war. “Certainly, the agenda will include some issues like the $180million Halliburton bribery scandal, the $2b Malabu Oil deal…

BY THE NATIONMAR 31, 2016

Attorney-General of the Federation (AGF) and Justice Minister Abubakar Malami and Economic and Financial Crimes Commission (EFCC) Chair Ibrahim Magu are in the United States, barely two weeks after a similar trip to the United Arab Emirates (UAE) where about $200b looted funds are believed to have been stashed away by former public officers.

On the agenda are likely to be the extent of the war against graft,  how to repatriate looted funds, the fate of fleeing former public officers, the $180million Halliburton bribery scandal and the $2billion Malabu Oil deal.

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Italy Probes Shell’s Role in Purchase of Nigerian Oil Block

Screen Shot 2016-03-31 at 21.20.56Shell and the Italian oil firm Eni bought the block known as OPL 245 in 2011. Activists including the watchdog group Global Witness say the money ultimately went to a company secretly owned by a former Nigerian oil minister and never reached state coffers.

Global Witness and other groups filed a complaint in 2015 with the public prosecutor in Milan that the group says describes Shell’s role in the transaction.

Eni was already being investigated. Both firms have denied wrongdoing.

In a statement this week, Shell said officials searched its headquarters in The Hague in February and that it was cooperating with officials.

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Shell target of Nigerian corruption probe

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Screen Shot 2016-03-30 at 13.04.33Global Witness said Dutch supermajor and its partners exposed shareholders to risk.

By Daniel J. Graeber

LONDON, March 31 (UPI) — Transparency advocates said Royal Dutch Shell and its partners in Nigeria may have exposed shareholders to a high level of risk in a corrupt system.

Global Witness said it was joining Nigerian anti-corruption campaigners in working to expose what they say is an opaque corporate reputation in the country. Global Witness Director Simon Taylor said that, working with Italian energy company Eni, the Dutch supermajor was stained by corruption.

“Shell and Eni exposed their investors to massive risks and have been tainted by this theft from Nigerian citizens,” he said in a statement.

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Which Members of the Royal Dutch Shell Executive Committee Approved the OPL 245 Scam?

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Outsider: Contrary to what today’s newspaper reports might suggest, Shell wasn’t “dragged” into the long-running OPL 245 scandal – Shell was involved in orchestrating it from the very start.

Since expenditure at this level must have required the approval of the EC it will be interesting to see whether Shell will let us know which members of the EC were responsible for approving the scam.

Shell Nigeria deal probed in Italy

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The oil giant said it was cooperating with the authorities.

The probe is connected to the 2011 $1.3bn purchase of Nigeria’s OPL-245 offshore oil block by Eni and Shell.

As part of the investigation, Shell headquarters in The Hague were searched in February by Dutch police and prosecutors, a spokesman added.

“We can confirm we have received notice of proceedings from the public prosecutor in Italy,” the Shell spokesman said.

In 2014 a Milan court starting probing Italian oil giant Eni over allegations of corruption connected to the OPL-245 offshore oil block acquisition.

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Shell faces corruption probe over $1bn oil deal in Nigeria

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The Italian newspaper Corriere della Sera reported that the Dutch Financial Intelligence and Investigation Service (FIOD) and the Dutch public prosecutor had raided the multinational’s office in the Hague.

FULL ARTICLE

Shell is now being dragged into the investigation

Malabu $1.3 billion scandal: Dutch investigators question Shell officials

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PREMIUM TIMES had reported how Shell and Italian oil giant, Eni, agreed to secretly pay $1.3 billion to Malabu through the Nigerian government in 2011.

The money was meant for OPL 245, one of the largest oil blocs in Africa which was awarded to Malabu in 1998 when Dan Etete was the petroleum minister under the late dictator, Sani Abacha.

After Shell and Eni paid the money into Nigeria’s accounts in JP Morgan bank, London, the federal government transferred $801 million of the money into Malabu accounts controlled by Mr. Etete in Nigeria.

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Shell dragged into Nigeria oil corruption probe

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“We can confirm that representatives of the Dutch Financial Intelligence and Investigation Service (FIOD) and the Dutch Public Prosecutor recently visited Shell at its headquarters in The Hague,” a spokesman said.

“The visit was related to OPL 245, an offshore block in Nigeria that was the subject of a series of long-standing disputes with the Federal Government of Nigeria. Shell is cooperating with the authorities and is looking into the allegations, which it takes seriously.”

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Nigeria to Launch Environmental Cleanup

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Screen Shot 2016-03-15 at 10.34.57Shell Oil Co., a division of Royal Dutch Shell, admitted blame for oil spills in Ogoniland.

Peter Clottey: March 19, 2016 5:19 PM

Nigeria plans a massive cleanup in the oil-rich Niger Delta region, where some residents complain that years of poorly regulated petroleum production have taken a toll on vegetation, water quality, farmland and fishing communities.  

Alhaji Ibrahim Usman Jibril, minister of state for environment, said President Muhammadu Buhari is committed to resolving the country’s environmental challenges while creating jobs and ensuring sustainable development.

As evidence of that commitment, Jibril noted Buhari created two cabinet positions for the sector. Amina Mohammed is the minister for the environment.

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$2b Malabu oil block deal: Adoke’s accounts under probe

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Screen Shot 2016-03-18 at 11.23.39Posted By: Yusuf AlliMarch 16, 2016

The Economic and Financial Crimes Commission (EFCC) has started investigating the accounts and transactions of a former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Bello Adoke(SAN).

Some past public officers are also being probed over the $2billion Malabu oil block deal.

It was learnt that the anti-graft agency is also trying to establish from Adoke’s bankers whether the ex-minister owns safe deposit boxes.

A similar anti-graft agency in The Hague, Netherlands was confirmed yesterday to have searched Adoke’s residence following collaboration with the EFCC.

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Nigeria’s NNPC ‘failed to pay’ $16bn in oil revenues

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Tuesday 15 March 2016

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Nigeria’s state-owned oil company has failed to pay the government $16bn (£11bn) in a suspected fraud, according to an official audit.

The Nigerian National Petroleum Corporation (NNPC) provided no explanation for the missing funds, the auditor general told MPs.

Oil revenue accounts for two-thirds of the government’s funding.

President Muhammadu Buhari has promised to crack down on corruption since coming to office last May.

The NNPC has not commented on the auditor general’s findings.

The state oil giant has been mired in corruption allegations and losing money for many years.

Last month, the government announced that the NNPC would be broken up into seven different companies.

Nigeria’s former central bank governor Lamido Sanusi, now the Emir of Kano, was dismissed by the previous administration after saying that $20bn (£12bn) in oil revenue had gone missing in 2013.

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60 YEARS AFTER NIGERIA’S FIRST CRUDE: Oloibiri oil dries up, natives wallow in abject poverty

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Screen Shot 2016-02-17 at 08.47.47By Samuel Oyadongha & Emem Idio, Yenagoa: 13 MARCH 2016

Like the gold rush of California in 19th century America, the small settlement of Oloibiri, a district headquarters in Ogbia in the defunct Eastern Region, came into  limelight in second half of the 20th  century when workers of Shell Darcy converged on the  town in search of the black gold.

However, the explorers made history in June 1956 when they struck the black gold in swampy communities of Otuabagi/Otuogidi in the Oloibiri District of Ogbia, making the latter district the first in West Africa where crude oil was discovered in commercial quantity. Providence again ensured that the Ogbia kingdom produced the first minority President in history from the backwater of the Delta in the person of Dr. Goodluck Jonathan, an indigene of Otuoke.

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Time to End ‘Blood Oil’ Disaster in the Niger Delta

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By Richard SteinerProfessor and conservation biologist, Oasis Earth (www.oasis-earth.com): 10 MARCH 2016

The Niger Delta’s legendary “blood oil” disaster has persisted for decades, and is now deepening. Oil in the Delta fuels a dangerous mix of environmental devastation, a violent militancy that has killed thousands, human rights abuses, corporate greed and exploitation, epidemic corruption, massive oil theft, sabotage, repression, poverty, anger and despair. It is time to put an end to this ongoing atrocity, once and for all.

The 30,000 square mile Niger Delta — including rich coastal waters, islands, mangroves swamps, and rainforests — was once one of the most productive and diverse ecological habitats on Earth. But today, after 60 years of oil extraction, the region’s environment and society are devastated — a textbook example of the “oil curse.

The Delta is arguably the most severely oil-damaged environment anywhere in the world. A decade ago, our team of scientists conducting an oil damage assessment in the Delta estimated that each year, some 250,000 barrels (10 million gallons) of oil spill there, an amount comparable to that of the 1989 Exxon Valdez spill in Alaska — each year for 50 years. Oil operations have also caused extensive habitat degradation from road building, forest clearing, dredging and filling, thousands miles of pipelines, and chronic pollution from gas flaring and drilling wastes.

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PIB, others threaten our operations in Nigeria – Shell

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Royal Dutch Shell Plc has said the passage of the Petroleum Industry Bill, which seeks to overhaul the Nigerian oil and gas industry, could take a huge toll on its current and future operations in the country.

The oil major stated this in its annual report for the year ended December 31, 2015, which was released on Thursday and obtained by our correspondent.

The PIB, which has been in the works since 2008 when it was first introduced to the National Assembly, suffered setbacks in the 6th and 7th National Assembly. It is expected to be re-packaged and submitted to the current legislature.

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Nigerian Pipeline Bombed, Knocking Off 300,000 Barrels Per Day

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Screen Shot 2016-02-17 at 08.47.47By Nick Cunningham09 March 2016

A bombed pipeline could cut into oil exports from Nigeria for the next few months.

The Trans Forcados pipeline was struck by a bomb in February, causing Shell Petroleum Development Corporation, a subsidiary of the oil major Shell, to declare force majeure, as it was unable to export crude through the Forcados terminal.

The pipeline may not be repaired until May, according to head of Nigeria’s state-owned oil company Emmanuel Ibe Kachikwu. “I have been assured by Shell that in six to eight weeks, we will be back,” said Kachikwu. “The earliest the line could be back up with replacements and parts flown in [to Nigeria] is mid-May,” a source told the Financial Times.

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Tanzania: Dar Businessman Hounded From Gas Blocks Deal

Screen Shot 2016-03-10 at 08.50.18Tanzania Daily News: 9 March 2016

Extracts

The Fair Competition Commission (FCC) has refused to entertain the application by Moto Mabanga, a businessman questioning about the deal for merging interest rights in three gas blocks offshore in Mtwara Region by Royal Dutch Shell Plc (Shell) and BG Group Plc.

In its letter addressed to the businessman, the FCC, through the Director General, Dr Fredrick Ringo, stated that the Commission could not act on his application because it approved the transaction involving the two foreign companies since last year.

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Nigerian FG splits NNPC into seven units, appoints heads

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President Muhammadu Buhari on Tuesday approved the immediate unbundling of the Nigerian National Petroleum Corporation, NNPC, into seven independent operational units.

The Minister of State for Petroleum Resources, Ibe Kachikwu, announced the split of the state-owned oil company in Abuja, Nigeria’s capital on Tuesday.

The new units are Upstream, Downstream, Gas & Power, Refineries, Ventures, Corporate Planning & Services and Finance & Accounts.

With the announcement of this new policy road map, the realigned NNPC comprises of five business-focused and two service driven units.

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Bombed pipeline to halt Nigeria’s crude oil output until May

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By Maggie Fick in Lagos and Anjli Raval in London

The damage caused by an attack on an underwater pipeline is set to halt flows of Nigeria’s Forcados crude oil to one of the country’s biggest export terminals until May.

Shell Petroleum Development Corporation , a Royal Dutch Shell subsidiary which operates the pipeline, declared force majeure on February 21, a week after the pipeline was hit by an explosion, causing a leak that forced it to halt loadings to the Forcados export terminal.

Repairs to the pipeline could take until May, Emmanuel Ibe Kachikwu, minister of state for petroleum and the head of Nigeria’s oil company, said in Abuja on Tuesday.

The bombing of the pipeline was the most sophisticated attack on Nigeria’s oil-producing Delta in years and raised fears that such sabotage could once again cripple output in Africa’s top oil producer.

“I have been assured by Shell that in six to eight weeks, we will be back,” said Mr Kachikwu.

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South Africa to start shale gas exploration in next year

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Royal Dutch Shell, Falcon Oil & Gas and Bundu Gas & Oil are among five companies which have applied for exploration licenses being reviewed by South Africa’s Petroleum Agency, the regulator said on Tuesday.

The Petroleum Agency will submit its recommendations to the government by early May. The ministry of mineral resources will make the final decision on granting licenses.

“One area of real opportunity for South Africa is the exploration of shale gas,” a statement from cabinet ministers responsible for the economy said.

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South Africa looks to shale gas future

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Shell one of the early examiners of gas potential in a country plagued by an electricity crisis

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By Daniel J. Graeber: March 8, 2016

PRETORIA, South Africa, March 8 (UPI) — The South African government said Tuesday it was expecting to reap the rewards of shale natural gas, with exploration slated as early as 2017.

Royal Dutch Shell is among the early entrants into the South African shale sector, reviewing the prospects for gas in the country’s Karoo basin.

South African Minister of Rural Development and Land Reform Gugile Nkwinti told government officials in Pretoria shale gas exploration presents a real opportunity for economic growth in the country.

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March 2016: Multiple news sources report that Nigerians have been given the go-ahead to sue Shell in UK court over oil spills

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By John Donovan

Multiple news sources have reported the latest legal proceedings brought against Shell in London on behalf of Nigerian communities. 

Parties pursuing litigation against Shell are frequently in contact with me seeking advice, inside information and internal evidence. I am always grateful in this regard for invaluable input from Shell insider sources, some of whom have provided information to me for over a decade. 

With regards to the latest litigation, suffice it to say that I was pleased to provide extensive assistance on a confidential basis to Leigh Day, the London law firm acting for their Nigerian clients. 

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Nigerian Federal Government slams oil firms, including Shell, with N2trn lawsuit over alleged oil fraud

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By Dimeji Akinloye: 4 March 2016

The federal government has reportedly filed lawsuits against multinational oil corporations – Shell, Chevron, Agip and other major oil companies for failing remit N2 trillion crude oil revenue.

The revenue not declared between 2011 and 2014, according to Ynaija, runs into over 57 million barrels of crude oil shipments.

As contained in the lawsuits, which were filed on Thursday, March 3, at a Federal High Court in Lagos, the decline in crude oil revenue recorded in 2014 “necessitated an intelligence based gathering of data, which showed that part of the reasons for the decline in the revenue from crude oil exploration was the refusal to declare and/or under-declaration of crude oil shipments”.

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Nigeria to Split Up National Oil Company

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By BENOIT FAUCON: March 4, 2016

Nigeria’s oil minister Emmanuel Ibe Kachikwu said Nigerian National Oil Co. will be broken up into 30 independent oil firms as the country’s government combats corruption and bureaucracy after the oil price crash. PHOTO: REUTERS

The previous administration of Goodluck Jonathan has been widely accused of bribery and misappropriation of funds in the oil sector. Former oil minister Diezani Alison-Madueke is being investigated on corruption allegations in Nigeria and the U.K. Through her lawyer, she has denied any wrongdoing.

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Cash Can’t Fix the Village Ruined by Shell’s Oil

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Screen Shot 2016-02-29 at 15.03.25By Chris Kay and Ed Kiernan: Bloomberg.com

3 March 2016

As canoes glide past mangroves blackened by oil in the Niger River delta, two dozen children splash around in a creek covered by a sheen of crude while families take shelter from the punishing midday sun in half-built houses.

Once a bustling farming and fishing town in the region of Ogoniland, Bodo has become a poster child in Nigeria for the devastating impact on local communities caused by the leakage of about 240,000 barrels of crude a year in the delta, close to the amount that spilled in 1989 when the Exxon Valdez tanker ran aground off Alaska.

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Nigerians given go-ahead to sue Shell in UK court over oil spills

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Screen Shot 2016-02-17 at 08.47.47Owen Bowcott Legal affairs correspondent: Wednesday 2 March 2016 

In a statement before the hearing on Wednesday, Shell blamed sabotage and oil theft for the pollution. The company said it had halted production more than two decades ago in Ogoniland, the area where the two communities are located.

Shell said it would challenge the jurisdiction of the British court: “Asking the English court to intervene … is a direct challenge to the internal political acts and decisions of the Nigerian state.”

Human rights activists argue that such pollution levels would never be tolerated in the home countries of such multinationals.

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Nigerian Communities Can Sue Royal Dutch Shell Over Oil Spills, U.K. Court Says

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Screen Shot 2016-03-02 at 15.29.20The suits are the latest international litigation to face Shell for environmental damage stemming from its Nigerian operations

By SARAH KENT: March 2, 2016 

LONDON—Two Nigerian communities can sue Royal Dutch Shell PLC’s Nigerian unit in the U.K. over oil spills in the West African country, a London court ruled Wednesday, testing whether energy companies can be held liable in their home country for events elsewhere.

The lawsuits, filed with the London High Court, are the latest international litigation to face Shell for environmental damage stemming from its Nigerian operations. The Anglo-Dutch company reached a £55 million ($77.4 million) settlement in a similar U.K. lawsuit brought by the Niger Delta-based Bodo community in January 2015. It also is being sued in the Netherlands in a separate case over Nigerian oil spills.

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Nigerians sue Shell in UK court over oil spills contamination

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London law firm Leigh Day & Co. is representing them after winning an unprecedented $83.5 million in damages from Shell in a landmark ruling by the same court last year. Shell originally offered villagers $50,000.

In a statement Wednesday before the trial opened, Shell blamed sabotage and oil theft for the ongoing pollution and noted it had halted oil production in 1993 in Ogoniland, the area where the two communities are located in Nigeria’s oil-rich southern Niger Delta.

Shell said it will challenge the jurisdiction of the British court.

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Shell and Nigerian Partner Are Sued in Britain Over Spills

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By STANLEY REEDMARCH 2, 2016

LONDON — Nigerian communities from the oil-rich Niger Delta initiated court action on Wednesday in London against the energy giant Royal Dutch Shell, in a case that may have far-reaching implications for whether companies can be sued in Britain for pollution and damages caused by their activities in other countries.

The case is based on accusations by farming and fishing communities that say they have suffered years of damage because of repeated large spills from oil pipelines in their home areas.

The law firm Leigh Day is bringing the claims against Shell and its Nigerian joint venture, the Shell Petroleum Development Company of Nigeria, in London on behalf of two communities in the swampy, oil-rich Niger Delta: the Ogale and the Bille.

On Wednesday, the claimants won a small victory when a judge ruled that the Nigerian venture could be included in the case, along with its parent company.

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INVESTORS WARNED: SHELL FACES FURTHER LAWSUITS FOR NIGERIA OIL SPILLS

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Screen Shot 2016-02-29 at 15.03.25Shell’s failure to maintain and protect pipelines may leave it liable to a raft of compensation claims from dozens of Niger Delta communities, said Amnesty International today as London law firm Leigh Day announced two more lawsuits against Royal Dutch Shell.

The latest cases were filed today on behalf of two communities in the Niger Delta who have been affected by oil pollution, Bille and Ogale.

In its investor briefing, Shell’s growing liabilities in the Niger Delta: Lessons from the Bodo court case , Amnesty International warns Shell’s investors that failures in the way the oil giant inspects and reports on oil spills could mask the scale of potential financial liability arising for Shell.

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Nigeria Groups Take Oil Spill Complaints Against Shell to Court

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Screen Shot 2016-02-29 at 15.03.25Sarah McGregor and Chris Kay: March 1, 2016

Two Nigerian communities have filed cases in a London court alleging Royal Dutch Shell Plc is responsible for oil spills that have contaminated the Niger River delta, according to the legal team representing them both.

The first hearing for both claims against Shell and its local unit, Shell Petroleum Development Co., will begin on Wednesday in a London court, according to the statement. The action is being led by Leigh Day, the law firm that handled a similar case that Shell settled last year by agreeing to pay 55 million pounds ($77 million) to compensate more than 15,000 residents of the Nigerian Bodo community for oil spills in 2008. Shell Petroleum Development is “at an early stage” of reviewing the claims, the company said in a statement.

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Shell being sued in two claims over oil spills in Nigeria

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Two communities are claiming compensation and want Shell to clean up their land.

Shell said it is at an “early stage” in reviewing the claims and that the case should be heard in Nigeria.

The Ogale community of about 40,000 people in Rivers State, on the coast of Nigeria, who are mainly farmers or fishermen, are some of the claimants.

Their case is being handled by law firm Leigh Day.

Spills since 1989 have meant they don’t have clean drinking water, farmland or rivers, their claim says.

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Malabu deal: The unending controversy over an oil block

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The revocation of Malabu’s licence on July 2, 2001, triggered a string of litigations on OPL 245. The shoddy handling of the aftermath by the Obasanjo administration accounted for the recurring disputes on the oil block.

At a point in 2006, the Obasanjo administration restored the OPL 245 to Malabu Oil and Gas. In an executive summary, a former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Bello Adoke, said: “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.

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Nigerian Economic and Financial Crimes Commission Begins Probe Of $2b Malabu Oil Scandal

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BY THE NATIONFEB 22, 2016

The Economic and Financial Crimes Commission has initiated a discreet probe into the $2 billion Malabu Oil deal to ascertain whether the country was short-changed.

The agency may interact with those who were parties to the agreement including five former ministers, an ex-Group Managing Director of NNPC and top officials of the Department of Petroleum Resources.

Already, a former Attorney-General of the Federation and Minister of Justice, Mr. Mohammed Bello (SAN), has written to the EFCC on how the deal was struck with Shell Nigeria Ultra Deep Limited (SNUD).

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Bayelsa communities vow to shut down Shell’s operations

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By Samuel Oyadongha: 22 FEB 2016

YENAGOA—TWELVE aggrieved oil producing communities in Bayelsa State have threatened to shut down operations of Shell Petroleum Development Company, SPDC, over the company’s handling of its relationship with the host communities.

In a communique after a meeting attended by all the Community Development Committee, CDC, Chairmen and other stakeholders of the EA field host communities, the communities accused SPDC of defaulting on the implementation of General Memorandum of Understanding, GMoU, entered into with the communities.

The host communities also threatened to stage a protest against the oil company, alleging that the company failed to sign surveillance contracts and reduce the contracts duration period from 12 months to nine.

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Prisoners draw corporate evil-doers who should be in jail but aren’t

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By Katie Herzog on 18 Feb 2016

Jeff Greenspan and Andrew Tider created Captured, a project that commissions illustrated portraits of CEOs who aren’t in prison but should be — drawn by actual prisoners.

“Corporations frequently commit crimes any average person would be imprisoned for,” write Greenspan and Tider. “These corporate crimes devastate our environment, economy, and society, yet the companies committing them often get away with only paying a settlement. These payouts do little damage to a corporation’s bottom line and are practically baked into their budgets.”

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Nigeria’s revenue woes worsen as major trouble hit Forcados, oil lifting suspended

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Emmanuel Mayah: 18 FEB 2016

Nigeria’s crude oil export operation has suffered a serious setback following a major crack-up of a giant underwater pipeline at the Forcados export terminal.

Following the incident, crude oil lifting h‎as now been suspended at that platform, officials said.

The pipeline, described as a big artery in the nation’s oil production was said to have suffered a huge rupture under circumstances that are at the moment still hazy.

Nigeria is already bleeding from the impact of low oil prices, with revenue dipping month after month.

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Face-off over Malabu Shell/Eni oil bloc scam

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From Godwin Tsa, Abuja: 10 FEB 2016

A letter written to the Attorney-General of the Federation (AGF) and Minister of Justice, Abubakar Malami (SAN) to the Chairman of the Economic and Financial Crimes Commission (EFCC), Ibrahim Magu, directing him to forward the case file to him, has not been complied with two weeks after it was served on him.

President Muhammadu Buhari began the process in retrieving the licence by revisiting the issues around the controversial oil bloc which has bogged other past governments enmeshed in its illegal transfer to a new ownership.

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SHELL/NIGERIAN CORRUPTION

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BY PREMIUM TIMESFEB 08, 2016

On Thursday, January 28, Ibrahim Magu, the acting chairman of Nigeria’s anti-corruption agency, the Economic and Financial Crimes Commission (EFCC), received a letter.

The two-paragraph letter from the office of the Attorney General of the Federation and Minister of Justice made only one request from the anti-graft chief. Signed by Muhammad Diri, the Director of Public Prosecutions of the Federation, the letter asked Mr. Magu to forward “the case diary in respect of an investigation into” the OPL 245 Malabu scandal.

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SHELL/NIGERIAN CORRUPTION

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By Editor on February 12, 2016

FORMER interface manager of Shell Production Development Company (SPDC), Chief Chidi Adebanya, is not being prosecuted by the Economic and Financial Crimes Commission (EFCC) for any offence, his lawyers have said.

The declaration is a blunt rebuttal of news report that he (Adebanya) was to be arraigned for alleged N7 billion tax evasion.

In a statement, his lawyer, Okey Obikeze, described the report as “false and mendacious.” He was reacting to a news story published in The Guardian on Monday, February 1, 2016.

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Why Oil Production in Ogoniland is Still Impossible

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Why Oil Production in Ogoniland is Still Impossible

By Fegalo Nsuke: 

Shortly after the hangings on 10 November 1995, Shell Oil Company set up an Ogoni Re-entry department to help the company break the Ogoni resistance and pave the way for the resumption of oil mining in the area. That was Shell’s immediate response to the plight of the Ogoni people after the brutal killings of 9 leaders by the Nigerian government in 1995.

The government and Shell had thought that Saro-Wiwa’s killing would frustrate the Ogoni and ease the resumption of oil mining in Ogoniland. That was not to be as the people have consistently and persistently held on to the oil till date except in cases where agents of Shell have been reported to be stealing the Ogoni oil.

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LIVELY POSTINGS ON SHELL BLOG 1 FEB 2016

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“TEXVETTE”

Looks like Marvin Odum was stripped of key responsibilities and placed in a lame Role. Ironically he will have to clean up the messes he left in Alaska and Unconventionals. A bit of Karma, but he should no longer be on the payroll after all his major mistakes.

“OUTSIDER”

The merger of Shell T&T and Royal Dutch in 2004 resulted in a major loss to the UK exchequer, as the taxes previously paid by Shell T&T went to the Dutch government instead. Presumably the taxes previously paid by BG will now go to the Dutch government too?

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