{"id":12482,"date":"2022-07-22T12:16:53","date_gmt":"2022-07-22T12:16:53","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=12482"},"modified":"2022-07-22T12:16:53","modified_gmt":"2022-07-22T12:16:53","slug":"nigeria-shell-welcomes-verdict-from-the-milan-tribunal-over-opl-245","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/nigeria-shell-welcomes-verdict-from-the-milan-tribunal-over-opl-245\/","title":{"rendered":"NIGERIA: Shell Welcomes Verdict from the Milan Tribunal Over Opl-245"},"content":{"rendered":"\n

Shell has welcomed a decision by the Milan tribunal on the settlement made in 2011 with the Federal Government of Nigeria and Eni over OPL-245 where the government had separately allocated the same block to two different parties: Shell and Malabu.<\/p>\n\n\n\n

\u201cWe welcome today\u2019s decision by the Milan Tribunal. We have always maintained that the 2011 settlement was legal, designed to resolve a decade-long legal dispute and unlock development of the OPL 245 block. At the same time, this has been a difficult learning experience for us. Shell is a company that operates with integrity and we work hard every day to ensure our actions not only follow the letter and spirit of the law, but also live up to society\u2019s wider expectations of us.\u201d<\/p>\n\n\n\n

The 2011 Resolution Agreement, which was negotiated at the highest levels of the relevant government departments, aimed to resolve the long-standing disputes over the block and enable its development, generating economic activity and revenues that all parties would benefit from. Unfortunately, the block remains undeveloped.<\/p>\n\n\n\n

Background to the Milan proceedings; the history of the OPL 245 block; other legal investigations and proceedings; and ethics and compliance at Shell:\u00a0<\/strong><\/p>\n\n\n\n

  1. Milan proceedings:\u00a0<\/strong>On December 20, 2017, the Judge of the Preliminary Hearing of the Tribunal of Milan in Italy remanded the Company and four of its former employees for trial for alleged offences related to Oil Prospecting Licence (OPL) 245 in Nigeria. The Company has defended these charges, maintaining that there is no basis to convict the Company or its former employees. This was the conclusion of a detailed investigation led by the international law firm, Debevoise & Plimpton LLP.
    <\/li>
  2. Other legal investigations and proceedings:\u00a0<\/strong>In October 2019, the U.S. Department of Justice (DoJ) notified us that it has closed its inquiry into Shell in relation to OPL 245. We understand that this is based on the facts available to the DoJ, including ongoing legal proceedings in Europe. In April 2020, the U.S. Securities and Exchange Commission notified us that it has closed its inquiry into Shell in relation to OPL 245.

    In December 2018, the Federal Republic of Nigeria (FRN) filed a civil claim against Royal Dutch Shell plc in the English High Court, in relation to OPL 245. In May 2020, the English High Court declined jurisdiction and ruled that the FRN is not entitled to bring these claims in England. In September 2020, the Court of Appeal denied the FRN\u2019s request to be allowed to appeal against the High Court\u2019s ruling.

    In Nigeria, Shell continues to defend charges in relation to OPL 245.

    There is no update available to share on the Dutch Public Prosecutor\u2019s investigation into this matter.


    Shell has accurately reported on the OPL 245 settlement in our annual reports since 2011. The payment by Shell Nigeria Ultra Deep Limited, made to the Nigerian government as part of the 2011 Resolution Agreement, was disclosed to the Nigeria Extractive Industries Transparency Initiative (NEITI) in 2012. In\u00a0Q2 2020<\/a>, we took the decision to impair the economic value of the OPL 245 license and associated activities. This was one of a number of impairment losses.
    <\/li>
  3. Ethics and compliance at Shell:\u00a0<\/strong>Shell has clear rules on anti-bribery and corruption and these are included in our Code of Conduct for all staff. This is available on our website, as is our Ethics and Compliance Manual which provides practical advice on how to comply with laws and regulations.\u00a0All employees are expected to comply with the Code of Conduct and failure to do so will result in consequences up to and including dismissal. Internal investigations confirmed 252 substantiated breaches of the Code of Conduct in 2020. As a result, we dismissed or terminated the contracts of a total of 54 employees and contract staff.\u00a0We have reported these numbers in our Sustainability Report for more than a decade. Note: most Code of Conduct violations are unrelated to anti-bribery and corruption matters, but related to protection of assets, conflicts of interest and harassment. To put these numbers in context, we have around 80,000 employees excluding contractors.<\/li><\/ol>\n","protected":false},"excerpt":{"rendered":"

    Shell has welcomed a decision by the Milan tribunal on the settlement made in 2011 with the Federal Government of Nigeria and Eni over OPL-245 where the government had separately … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":10951,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[7442,11,7444],"tags":[7950,10623,1749,10622,2297],"class_list":["post-12482","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-countries","category-top-news","category-west-africa","tag-malabu","tag-milan-tribunal","tag-nigeria","tag-opl-245","tag-shell","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2021\/09\/Nigeria-Shell-Petroleum-Development-Company.jpg?fit=1280%2C719&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-3fk","jetpack-related-posts":[{"id":1764,"url":"https:\/\/www.oilnewskenya.com\/index.php\/enis-ceo-coo-under-investigations-on-corruption-allegations-in-nigeria\/","url_meta":{"origin":12482,"position":0},"title":"Eni’s CEO, COO under investigations on corruption allegations in Nigeria","author":"Samuel Kamau Mbote","date":"September 12, 2014","format":false,"excerpt":"Italian oil and gas giant Eni has said it is cooperating with the Milan prosecutor\u2019s office in relation to the preliminary investigation launched on the acquisition of the Nigerian block OPL 245 in 2011. 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