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Shell Pays $10 Million Fine to Nigerian Government

By Elisha Bala-Gbogbo – Dec 22, 2010 7:58 PM GMT+0000

Royal Dutch Shell Plc paid $10 million in fines to the Nigerian government over alleged bribes paid on its behalf by Panalpina Welttransport Holding AG, to Nigerian customs officials, Justice Minister Mohammed Adoke said.

The settlement is part of a broader resolution of bribery allegations involving companies operating in Nigeria, Africa’s top oil producer and most populous nation. JGC Corp. of Japan has “proposed settlement talks” in connection to its role in a $180 million bribery case, Adoke told reporters today in Abuja, the capital. No one answered phone calls to JGC’s office in Tokyo outside normal business hours. Tony Okonedo, Shell’s Lagos-based spokesman, declined to comment when reached on his mobile phone today. A message left outside normal business hours for Martin Spohn, spokesman for Basel, Switzerland-based Panalpina, was not immediately returned.

Yesterday, Halliburton Co., the world’s second-largest oilfield services provider, agreed to pay $35 million to Nigeria to settle charges related to bribery allegations, the Houston- based company said.

Nigeria withdrew corruption charges filed earlier this month against Halliburton and former U.S. Vice President Dick Cheney and companies including Technip SA of France, Eni SpA unit Snamprogetti SpA and Houston-based KBR Inc. The country alleges that the companies were part of group known as TSKJ, which paid $180 million in bribes to Nigerian officials between 1994 and 2004 to win a $6 billion liquefied natural gas plant contract.

To contact the reporter on this story: Elisha Bala-Gbogbo in Abuja at [email protected]

To contact the editor responsible for this story: Antony Sguazzin at [email protected].

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