Eni did not make thorough checks in OPL 245 deal – Ex board member

Eni made no thorough background checks on a middleman it hired to broker a $1.3 billion Nigerian acquisition, a former board member of the Italian oil group told a Milan court.

Milan prosecutors allege bribes totalling around $1.1 billion were paid, including to middleman Emeka Obi, in the 2011 purchase by Eni and Anglo-Dutch peer Royal Dutch Shell of Nigeria’s OPL 245 offshore oilfield.

The prosecutors allege the bribes were paid to win the licence to explore the field which, because of disputes, has never entered into production. Shell expects the landmark corruption trial to last many months. All those charged have denied any wrongdoing.

Luigi Zingales, an Eni board member from May 2014 to July 2015, told judges he had flagged to the company a lack of due diligence into a broker firm used in the deal, and headed by Obi, calling it “a significant hole in governance”.

Zingales, who at the time was also a member of Eni’s risk committee, said using a middleman was not its normal practice. Asked if he had spoken of his doubts with current Eni CEO Claudio Descalzi, who is one of those being tried, Zingales said they had spoken during a board meeting.

Source: Reuters

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