By Ayo Yusuf
British multinational oil company, Shell Nigeria Plc has accused billionaire oil mogul, Benedict Peters, of owing its company $2.6 billion.
Mr. Peters who runs Aiteo Eastern E&P Company Limited, a leading indigenous oil exploration firm he founded in 2013 is reportedly also owing seven Nigerian banks, including Zenith Bank Plc, Fidelity Bank Plc, and Guaranty Trust Bank, undisclosed sums of money.
The $2.6 billion debt to Shell represents an increase of $910 million to its 2022 figure of $1.7 billion which Shell Plc initially reported as the outstanding loans.
Both Shell and Aiteo have been locked in a legal dispute since late 2019, when the creditors notified the latter of its default.
The alleged e$2.6 billion debt can be traced back to Aiteo’s acquisition of a pipeline and operating interest in a highly valuable onshore oil block eight years ago.
The banks extended loans amounting to $1.5 billion to support the acquisition, while Shell provided $504 million in financing as the asset seller.
Since the initial loan agreement, Aiteo, Shell, and the banks have been embroiled in a protracted legal battle.
Aiteo however claims it has already repaid $1.2 billion and denies defaulting.
But the lenders argue that its outstanding debt has reached approximately $2.6 billion, factoring in interest, fees, and penalties.
In the face of the recent lawsuit, Mr. Peters is scheduled to hold a crucial meeting with officials from the Zimbabwean government. The meeting aims to address delays in a platinum project located in the southern African country.
Peters, renowned for his philanthropic endeavours, is seeking to resolve concerns and find a way forward for the project, marking a significant step in addressing the project’s setbacks.
Recent reports suggest that Mr. Peters is also exploring opportunities in Zimbabwe’s lithium mining sector. His interest in the country’s mining sector could pave the way for new investments and partnerships in Zimbabwe’s resource-rich industry.
