London’s high court has ruled that the lawsuit launched by the Nigerian government against U.S. bank JP Morgan Chase, claiming over $1.7 billion for its role in a disputed 2011 oilfield deal, will proceed to trial.
It would be recalled that the suit filed in the English courts in 2017 relates to the purchase of the offshore OPL 245 oilfield in Nigeria by oil majors Royal Dutch Shell and Eni in 2011, which is the subject of an ongoing trial in Milan.
Local reports have it that the London trial, billed for six weeks, will start on the first available date after Nov. 1 next year, meaning that proceedings may not begin until 2022.
It was disclosed that as part of the proceedings, JP Morgan will also have to disclose within 21 days which individuals at the bank made the final decision to transfer the funds in question.
A spokesperson for the Nigerian government on the case was quoted to have said “Nigeria is pleased that JP Morgan has agreed it will now confirm all the senior figures at the bank who were involved”.
“This claim will move forward and Nigeria will hold JP Morgan accountable for its central role in the OPL 245 fraud.”
It should be noted that in the lawsuit, Nigeria alleges JP Morgan was negligent in its decision to transfer the funds in escrow to a company controlled by the country’s former oil minister Dan Etete instead of government coffers.
Reports have it that the damages sought include the monies allegedly sent to Etete, around $875 million paid out in three installments, plus interest taking the total to $1.7 billion.
Analysts are of the opinion that the decision is likely to compel the bank to disclose details of its internal processes. Recall that JP Morgan sought to quash the case last year.
It should be recalled that the Milan trial began in 2018 and in July 2020, Italian prosecutors asked a Milan court for Eni and Shell to be fined and some of their present and former executives, including Eni CEO Claudio Descalzi, to be jailed.
Also, they requested Eni and Shell to be fined 900,000 euros ($1.06 million) each and sought to confiscate a total of $1.092 billion from all the defendants in the case, the equivalent of the bribes alleged to have been paid.
It was disclosed that final defense arguments from lawyers representing Shell, Eni, and its executives are being made to the court. Meanwhile, the next hearing is billed for Nov. 25.
