Shell Scraps £500m North Sea Sale Amid Fraud Allegations — What It Means for Corporate Due Diligence

In a sudden reversal that has sent ripples through energy markets and corporate governance circles, Royal Dutch Shell plc and ExxonMobil have abandoned a £500 million sale of natural gas assets in the Southern North Sea after concerns emerged about the prospective buyer, Viaro Energy, and ongoing fraud allegations against its leadership. 

The agreement, originally announced in July 2024, would have transferred interests in 11 gas fields and the Bacton Terminal, part of one of the UK’s longest-producing offshore hydrocarbon portfolios. That plan, however, has now “collapsed” by mutual agreement between Shell, Exxon, and Viaro, with Shell stating that evolving commercial and market conditions and unmet requirements meant the transaction could not proceed. 

The cancellation follows intense scrutiny over fraud allegations facing Viaro Energy’s CEO, Francesco Mazzagatti, whose management of a previous acquisition has been challenged in the UK High Court. Documents allege the use of **“fictitious” £500 million loans from unnamed sources to finance an earlier takeover — claims the CEO has denied as a “vexatious campaign.” 

Where Shell initially saw the asset sale as routine divestment from ageing fields — part of a broader strategy to streamline its UK portfolio and focus on more profitable or strategic energy projects — the dispute over the buyer’s credibility appears central to the deal’s failure. 

The original potential sale had been framed as part of a retreat by major oil companies from mature North Sea operations, with Shell and Exxon both reducing their stakes in older assets while maintaining interests in newer developments. 

Shell and Exxon’s decision to walk away from the deal may offer a case study in heightened reputational risk and due-diligence in large energy asset disposals, particularly where buyers face contentious legal challenges. Investors and market watchers will now be watching closely to see how both companies recalibrate their asset strategies in the UK and North Sea region.

Editor’s Note on Sources and Reporting

This article is based on independent reporting from mainstream and specialist business news outlets.

Publicly available sources confirm that:

• Shell plc and ExxonMobil cancelled the planned sale of Southern North Sea gas assets to Viaro Energy, originally announced in July 2024, after completion requirements were not met.

• The proposed transaction covered interests in 11 gas fields and the onshore Bacton Terminal.

• The cancellation coincides with ongoing High Court proceedings and legal scrutiny involving Viaro Energy’s leadership, including allegations reported in the business press relating to financing arrangements for prior acquisitions. Those allegations are disputed.

The article’s analysis focuses on corporate due diligence, reputational risk, and strategic implications for Shell, and does not assert wrongdoing beyond what has been reported by named sources. Readers are encouraged to consult the original reporting for full context.

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Disclaimer

This article is based on publicly available reporting and verifies all statements against credible news sources. All quotes, figures, and assertions are taken from named reports or reputable outlets. The article does not allege wrongdoing by any individual beyond what is present in reported sources and does not ascribe motive or intent beyond documented facts. Readers should consult original source material and official corporate statements for complete context. 

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