Italian court rejects Nigeria's billion-dollar compensation claim against Eni and Shell

An appeals court in Milan, Italy, on Friday dismissed Nigeria's $1.092 billion compensation claim against Italian energy group Eni and Shell Plc in civil proceedings over an oil contract $1.3 billion.

The ruling was read out to the court, Reuters reported on Friday.

In July, prosecutors dropped related criminal charges, clearing Eni and Shell, as well as executives, including Eni CEO Claudio Descalzi, in one of the oil industry's biggest alleged corruption cases.

The main deal revolved around a deal in which Eni and Shell acquired the OPL 245 offshore oil field in 2011 to settle a long-standing dispute over ownership.

Prosecutors alleged that just under $1.1 billion of the amount total had been diverted to politicians and intermediaries.

Eni declared Friday satisfied with the decision of the court of appeal and a arbitration against the African country at the International Center for Settlement of Investment Disputes (ICSID).

"Eni recalls promoting ICSID international arbitration in Washington, United States, against Nigeria for the protection of its OPL 245 license in view of all the harmful consequences suffered in this case," the Italian group said in a press release.

In a separate message, Shell welcomed the dismissal of the civil suit.

"This follows the Milan Criminal Court's finding that Shell or its former employees when they were fully acquitted in 2021, a decision which was upheld in July 2022, following the conclusion of criminal proceedings,” Shell added.

A lawyer representing Nigeria in the proceedings said on Friday that the country is still in the process of decide to appeal the decision to the highest administrative court in Italy.

Documents explaining the reasons for Friday's court ruling are expected to be available in 90 days.

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