New Eni Chief Investigated Over Nigeria Purchase
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Version 0 of 1. LONDON — The Italian oil giant Eni confirmed on Thursday that its recently appointed chief executive and one of his key lieutenants were under investigation in Milan. Prosecutors there have opened an international bribery investigation over the company’s acquisition of an offshore oil block in Nigeria. In 2011, Eni and Royal Dutch Shell bought the exploration tract for $1.1 billion after long and difficult negotiations. The block had been entangled in an ownership dispute for about a decade, preventing it from being developed, although it was considered very promising. According to Eni, the Nigerian government lost patience, canceled the license on the tract, issued a new one and then sold it to the oil majors. A court official in Milan, who spoke only on the condition of anonymity, said the bribery inquiry involved Eni employees and others. In a statement, Eni — one of the largest oil and natural gas operators in Africa — denied “any illegal conduct” and said it was cooperating with the inquiry. Eni says it bought the block with Shell directly from the Nigerian government. Nongovernmental organizations have asserted that some of the money paid for the block went to Nigerian individuals to settle ownership claims. “Clearly something not quite normal was going on in the structure of this deal,” said Simon Taylor of Global Witness, a nongovernmental organization focused on financial corruption and environmental damage in developing countries. The investigation, he said, highlighted the need for greater disclosure about payments to African governments for oil and gas concessions: “Willingly or unwillingly, companies wind up being dragged into some kind of illicit payment structure.” Eni said it had entered into agreements to buy the block “only with the government of Nigeria and Shell.” Shell, in a statement on Thursday, said its companies “have acted at all times in accordance” with Nigerian law. Eni said it had learned that Claudio Descalzi, who became chief executive in May, and Roberto Casula, a former head of Africa operations who is now chief of development, operations and technology, were under investigation when it received documents related to the freezing of a “third party’s bank account.” Mr. Descalzi was the company’s head of exploration and production at the time of the transaction. Last year, Italian investigators searched the Milan home of Mr. Descalzi’s predecessor, Paolo Scaroni, and Eni’s headquarters during an inquiry into corruption by the engineering subsidiary Saipem, in Algeria. Saipem’s chief executive was forced out. |