Shell’s Latest North Sea Fire Sale: Because Who Cares About Due Diligence?

Stay tuned—because this train wreck is far from over.

Posted by John Donovan: 8 Feb 25

What do you do when you’re one of the world’s most profitable, polluting, and morally flexible oil giants? If you’re Shell, you push ahead with a half-billion-pound deal to offload UK gas fields to a buyer accused of—checks notes—faking bank statements, forging documents, and misappropriating €143 million. Oh, and the cherry on top? Said buyer, Francesco Mazzagatti, claims to have secured funding from an Abu Dhabi Sheikh…who, as it turns out, has no idea who he is.

You really can’t make this stuff up.

Despite all of this, Shell is racing full speed ahead with its £400m North Sea deal, handing over 5% of Britain’s gas production to Mazzagatti’s start-up, Viaro Energy. Sure, the entrepreneur is currently tangled in a High Court fraud lawsuit brought by Singaporean trading firm Alliance Petrochemical Investment (API), but that’s just a pesky detail, right? After all, Shell has rigorous due diligence processes—processes that have somehow led them to shake hands with a man embroiled in a multi-million-dollar scandal.

Meet the Buyer: A Rising Star in the Art of Corporate Denials

Mazzagatti, a man whose resume now includes “allegedly faking financial documents” and “denied by an Abu Dhabi Sheikh,” has been aggressively acquiring assets in the North Sea. His company Viaro already produces 25,000 barrels of oil per day, and this latest Shell deal would cement his position as a key player in UK energy. What could possibly go wrong?

When API filed its lawsuit in October—just three months after Shell announced the sale—Mazzagatti dismissed the allegations as a “vexatious campaign of defamation, harassment, and extortion.” Because obviously, a lawsuit alleging fraudulent financial activity has nothing to do with his dealings. Nothing at all.

And that mysterious $250m financing from Sheikh Zayed bin Mohammed al Nahyan? According to the Sheikh himself: “Sheikh Zayed has no relationship whatsoever with Mr. Francesco Mazzagatti, with whom he has never met, corresponded or spoken.” That’s right—the man supposedly backing Viaro has never even heard of him. Oops.

Shell: “Trust Us, We Checked”

When asked about the deal, Shell trotted out the usual corporate PR drivel, claiming it has a “well-established due diligence process” (poker face). Because, apparently, their “process” still led them to a deal with a man facing serious fraud allegations and a phantom financial backer. But don’t worry! Everything is still subject to regulatory approvals—which, in an industry with a track record of rubber-stamping deals with questionable players, is just so reassuring.

Meanwhile, BlackRock, Vanguard, and other Shell investors can sit back and enjoy the spectacle, knowing full well that no scandal is big enough to derail the relentless pursuit of profit. After all, Shell has mastered the art of playing dumb when it benefits them.

The Real Question: Will This Circus Actually Go Through?

Despite all the red flags, Viaro insists that the acquisition is “on track to be completed in 2025.” Mazzagatti remains defiant, claiming there is “not a single piece of credible evidence” backing API’s allegations. He even has the audacity to bring a counter-claim against API, because apparently, the best defense is a good offense.

So, here we are: Shell, a company worth hundreds of billions, offloading vital energy assets to a man facing a fraud lawsuit, backed by funding that appears to be imaginary. What could possibly go wrong?

Stay tuned—because this train wreck is far from over.

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