Malabu Scandal: Twist As Shell Writes Down OPL 245 License

Babajide Okeowo
Writer

Ad

Nsukka Catholic Diocese Grieves Loss of Bishop Emeritus Francis Okobo at 89

By Abiola Olawale The Catholic community in Nsukka, Enugu State has been engulfed by tears following the passing of Most Rev. Dr. Francis Emmanuel Ogbonna Okobo, Bishop Emeritus of the Nsukka Catholic Diocese. It was gathered that Okobo passed away on Friday, August 29, 2025, at the age of 89. The revered cleric, who served…

Anticipation as Tottenham Accelerates Transfer Chase for Atalanta’s Ademola Lookman

By Abiola Olawale English football club, Tottenham Hotspur is reportedly intensifying negotiations to sign Atalanta’s star forward Ademola Lookman as the summer transfer window approaches its September 1 deadline. It was gathered that Lookman, a 27-year-old Nigerian international, has reportedly caught the eye of Tottenham. Lookman is also reportedly eager to return to the Premier…

Oil Prices Aren’t Likely To Rise Anytime Soon

Analysts surveyed by Reuters expect Brent Crude to average $67.65 per barrel and WTI Crude to average $64.65 per barrel this year, with slight adjustments from previous forecasts. Factors contributing to the subdued oil price outlook include rising supply from OPEC+ and non-OPEC+ producers, slowing demand growth post-summer, and uncertainties from U.S. trade policies. Major…

Ad

A new twist has been introduced to the ongoing criminal trial of the Oil Processing License, OPL 245 offshore field as Multinational Petroleum Oil And Gas giant, Royal Dutch Shell, one of the key figures in the middle of what has now been termed as ‘unprecedented corporate corruption trial’ in the oil and gas sector, announced that it would write down its investment in the offshore field in Nigeria.

A write-down is the accounting term used to describe a reduction in the book value of an asset due to economic or fundamental changes in the asset, thus becoming an impaired asset.

Shell announced the write-down during its second-quarter 2020 earnings call on Tuesday. The company had recorded losses in its upstream division, including a post-tax impairment charge of $4.7 billion related to write-downs of the Malabu oilfield, and assets sales in North America and Brazil.Malabu Oil Scandal shell eni

Read also: Shutdown Threats: FG Set To Open Dialogue With Oil Communities – Deputy Gov.

The company also announced that its upstream division had losses of $6.7 billion, due to a 7% fall in production to 2.4 million barrels a day. However, adjusted earnings for the second quarter fell to $600 million compared to $3.5 billion this period last year.

The OPL license has been at the heart of protracted litigation in Italy after prosecutors alleged corruption. Shell bought the oilfield alongside an Italian company, Eni, in 2011. Together, they paid $1.3 billion. The payment was to a company called Malabu, which was owned by Nigeria’s former Oil Minister Dan Etete. However, Italian prosecutors claim that most of the payments were kickbacks to Nigerian government officials.

The prosecutors have, therefore, called for an 8-year prison sentence for former Eni CEO, Paolo Scaroni. Both companies have been fined $1.04 million and prosecutors seek the confiscation of $1.092 billion from the defendants of the case.

The prosecutors also called for jail terms ranging from ten to five years for all principal actors in what has now been termed as ‘unprecedented corporate corruption trial’.

Ad

X whatsapp