Two Milan prosecutors, Fabio De Pasquale and Sergio Spadaro, have been sentenced to eight months in prison by an Italian court for failing to file critical documents in a corruption trial involving the $1.3 billion acquisition of a Nigerian oilfield by Eni and Shell.
The court found that the prosecutors withheld key evidence, including a video from a former Eni external lawyer that could have supported Eni’s defense. The verdict came from a court in Brescia, which has jurisdiction over Milan. The prosecutors’ lawyer argued for a full acquittal, stating that there was no explicit rule mandating the submission of such evidence.
In March 2021, a Milan court acquitted Eni, Shell, and all other defendants involved in the corruption trial. The acquittal came despite criticisms of the prosecutors’ conduct, with judges ruling that De Pasquale and Spadaro had a legal duty to submit evidence that might have aided the defense.
The case dates back to 2020 when the Nigerian government filed a lawsuit seeking $1.3 billion in compensation for Oil Prospecting License 245 (OPL 245). This license was originally awarded to Malabu Oil and Gas Ltd in 1998 but was revoked in 2001 before being reassigned to Shell without a bidding process. The deal later came under scrutiny for alleged bribes paid to Nigerian government officials.
Past allegations and responses
In July 2020, Italian prosecutors asked for Eni and Shell to be fined and sought jail time for their executives, including Eni CEO Claudio Descalzi. Prosecutors alleged that Eni and Shell had knowingly engaged in a deal where a large portion of the $1.3 billion paid for the oilfield would be used to bribe Nigerian politicians and middlemen.
At the time, Eni and Shell both denied any wrongdoing. Eni stated, “The prosecutors’ request is unfounded, and we are confident the truth will ultimately be established.” Shell, in its statement, said, “There is no place for bribery or corruption in our company.”
March 2021 Acquittal
On March 17, 2021, after more than three years of hearings and 74 sessions in court, Judge Marco Tremolada acquitted all defendants, stating that “there was no case to answer.”
The ruling came as a blow to the Nigerian government, which expressed disappointment and indicated that it might appeal the decision. The court’s judgement was expected within 90 days.
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The case revolved around a 2011 deal where Shell and Eni agreed to pay $1.3 billion to Nigeria to resolve ownership disputes over OPL 245, previously owned by Malabu Oil, a company controlled by former Nigerian oil minister Dan Etete.
Prosecutors claimed that $1.1 billion of this amount was siphoned off to politicians and middlemen, including Etete, who was convicted of money laundering.
Following the acquittal, Eni CEO Descalzi said, “This has been a difficult learning experience for us… Shell operates with integrity and works hard to ensure its actions follow both the law and societal expectations.” Eni’s legal team also praised the ruling, stating, “We have finally reached a judgement that restores Descalzi’s professional reputation.”
However, Tom Mayne, a research fellow at the University of Exeter, warned that the acquittal set “a dangerous precedent,” allowing companies to structure deals in a way that avoided direct payments to corrupt actors while still enabling bribery.
The exploration license for OPL 245, located offshore near the Niger Delta, remains in limbo. Though not revoked, it has yet to be converted into a mining license, and no oil has been produced from the field. In response, Eni has requested international arbitration against Nigeria for failing to permit exploitation of the oil block.
Despite the acquittal, Shell and Eni still face ongoing investigations and legal challenges in other countries related to the deal, including The Netherlands and Nigeria, where a separate trial is underway against Shell and Eni’s subsidiaries. Campaigners like Barnaby Pace of Global Witness called for an appeal, arguing, “Today’s verdict does not mark the final word in this scandal for Shell and Eni.”
