Four years after he was convicted of money laundering in France, Dan Etete, a former Petroleum Minister, through his company Malabu Oil, has become a billion dollars richer, courtesy of the Nigerian Government and Shell.

According to documents (filed March 22, 2012) before the Supreme Court of the State of New York in the US, President Goodluck Jonathan discreetly approved the transfer of the sum of $1.1bn to Mr. Etete on April 29, 2011, two weeks after he was re-elected.

The money was first paid to the Federal Government by two multinational oil companies: Nigeria Agip Exploration Limited (Agip) and Shell Nigeria Exploration and Production Company Limited (Shell) in respect of oil block OPL 245.

But shortly after the funds were credited to the Federal Government’s account, Mr. Jonathan ordered that it should be secretly transferred to a London account of Mr. Etete’s company, Malabu Oil.

It is not clear what deal Mr. Jonathan struck with Malabu, and on what basis the payment was made. President Jonathan’s spokesperson, Reuben Abati did not answer or return calls seeking his comment for this story. He also did not respond to a text message sent to him for the same purpose.

The government made the payment to Mr. Etete’s company even when it had repeatedly insisted that the award of the oil block to Malabu was done in violation of laid down procedures.

Shell insisted it had no knowledge that the government passed the funds to Mr. Etete’s company.

OPL 245: History

While serving as Petroleum Minister under late Head of State, Sani Abacha, Mr. Etete awarded his own company, Malabu, an oil block, OPL 245 in 1998.

The allocation was however reversed by the Federal Government under President Olusegun Obasanjo in 2001 when the FG described the allocation process as dubious. The block was allocated to Shell in 2002.

Following the revocation, a prolonged legal battle ensued with Malabu taking the Federal Government to court. In 2006, the Federal Government reversed itself and re-allocated the oil block to Malabu. This angered Shell which then filed arbitration proceedings in Washington.

Following the protracted legal battles, an agreement was reached between all parties.

The agreement

In an agreement titled “Block 245, Malabu resolution agreement” dated April 29, 2011 between Malabu and the Federal Government, the FG agreed to pay Malabu $1,092,040,000 in “full and final settlement of all its claims, interests or rights relating to OPL245.” The agreement also stated that the rights to the oil block would be reallocated to Agip and Shell.

In a separate agreement between Shell and Nigeria, titled “Block 245 resolution agreement,” the two multinationals (Agip and Shell) agreed to Pay the same sum “for the purposes of FGN settling all and any existing claims and/or issues over Block 245…”

In other words, the multinational oil firms agreed to pay $1.1bn to the FGN with the knowledge that the money would be used to settle any existing claims that existed by any other party to the oil block.

We didn’t pay to Etete

Despite knowing that the money was to be paid as settlement to a third party and knowing that Malabu was the only company with bragging rights over the oil block, Shell claims it did not know the money was to be paid to Mr. Etete’s Malabu.

“Shell was not aware that that money was to be paid to Malabu,” said Precious Okolobo, a communications officer with the oil company in a telephone interview.

Mr. Okolobo confirmed in a follow-up email that the “the Federal Government of Nigeria has allocated the deepwater offshore block OPL 245 jointly to Nigeria Agip Exploration (NAE) and Shell Nigeria Exploration and Production Company (SNEPCo),” and that “each now holds 50 percent in OPL 245, with NAE as operator of the block.”

“Any payments relating to the issuance of the license were made only to the Federal Government of Nigeria,” the Shell official said saying “in line with Shell’s information policy, we cannot reveal commercially sensitive information, and hence cannot comment further on the papers filed in the New York court proceedings.”

The American court case

Mr. Etete ‘s company is being sued in the United States for alleged refusal to honour an agreement with ILC, a company registered in the British Virgin Islands. The company claims it helped negotiate the agreement Malabu had with the FG and was thus entitled to payment under “an engagement letter and fee agreement” it signed with Malabu on January 19, 2010.

“ILC contends that it fully performed its obligations under the fee agreement entitling it to a 6 per cent success fee amounting to $65,522,400 and that Malabu has indicated that it will not pay this amount,” the company told the court.

Another company allegedly owed by Malabu over OPL 245 had also sued the company in the UK which led to a court freeze of some accounts linked to the company and also to Nigeria.

The Federal Government, through the Attorney General of the Federation, Mohammed Adoke had objected to the freezing of its account in a letter dated July 16, 2011 to the court saying “the FGN does not submit to the jurisdiction of the English courts and that this letter is sent only to claim immunity.

A history of corruption

Mr. Etete, who served as minister between 1995 and 1998, was convicted of money laundering in France in 2007. He was sentenced to three years in prison and given a fined $300,000. He was also asked to pay $150,000 to the Nigerian Government.

The former Minister appealed the ruling. In March 2009 however, a French appeal court confirmed the money laundering charges against Mr. Etete, and fined him $10.5 million after conviction.

Apart from money laundering and his controversial roles in oil block dealings, Mr. Etete is also believed to be a major beneficiary of the Halliburton bribe where $180 million dollars was paid as bribe to senior government officials by a consortium including a subsidiary of an American company, Halliburton.

Mr. Etete was an ally and business associate of Jeffery Tesler, the British middleman who coordinated the bribe scheme and who was recently convicted in the United States for his role in the bribe payment.

Neither Mr. Etete nor any other Nigerian has been convicted for the collection of the bribes; though the companies that made the payment and the middlemen have all been convicted or indicted in the United States and other host countries.

source http://premiumtimesng.com/business/5215-jonathan_-shell_-etete_-in-fresh-n155billion-scandal.html

Let the games begin!!!

thieving things.

ba7man: Let the games begin!!!

What game is beginning? Did you read part of the report that states:

"Following the protracted legalbattles, an agreement was reached between ALL parties.

The agreement
In an agreement titled “Block 245, Malabu resolution agreement” dated April 29, 2011 between Malabu and the Federal Government, the FG agreed to pay Malabu $1,092,040,000 in “full and final settlement of all its claims, interests or rights relating to OPL245.” The agreement also stated that the rights to the oil block would be reallocated to Agip and Shell"

So far, the whole transaction appears clean based on the quote above. However, the current legal battle arose from another group which appeared from no where to ask for settlement from the $1.1billion largesse

Why are Nigerians and Nlanders so gullible?

The 2 foreign oil companies agreed to pay $1.1 billion dollars as settlement to malabu oil and the FG authorised it, so whats the fraud here?

You see why many of you here made third class ?

emmydeep: Why are Nigerians and Nlanders so gullible?

The 2 foreign oil companies agreed to pay $1.1 billion dollars as settlement to malabu oil and the FG authorised it, so whats the fraud here?

You see why many of you here made third class ?

Gullible?
MY GOD, NIGERIAN STINKS TO HIGH HEAVEN.

bloggernaija:

Gullible?
MY GOD, NIGERIAN STINKS TO HIGH HEAVEN.

and Jah Jehovah loves the smell of Nigeria.. that is why he is not doing anything about it.. no matter how many Friday Camps sprout along Ibadan-Lagos expressway

Haba whats the fraud here na?

Sincere 9gerian:
What game is beginning? Did you read part of the report that states:

"Following the protracted legalbattles, an agreement was reached between ALL parties.

The agreement
In an agreement titled “Block 245, Malabu resolution agreement” dated April 29, 2011 between Malabu and the Federal Government, the FG agreed to pay Malabu $1,092,040,000 in “full and final settlement of all its claims, interests or rights relating to OPL245.” The agreement also stated that the rights to the oil block would be reallocated to Agip and Shell"

So far, the whole transaction appears clean based on the quote above. However, the current legal battle arose from another group which appeared from no where to ask for settlement from the $1.1billion largesse

Let us start with the allocation and how the oil block was got.

jona and his core values on display

hercules07:
Let us start with the allocation and how the oil block was got.

then you are raising an argument that does not involve gej.

Why was 1billion Dollar laundered off our foreign exchange if indeed Malabu is owned by a Nigerian?

Rubbish sensational journalism just to cast GEJ in bad light.
Where is the fraud here?

Eeediots

In 2006, the Federal
Government reversed itself and re-allocated
the oil block to Malabu. This angered Shell
which then filed arbitration proceedings in
Washington.
Following the protracted legal battles, an
agreement was reached between all parties.
The agreement
In an agreement titled “Block 245, Malabu
resolution agreement” dated April 29, 2011
between Malabu and the Federal Government,
the FG agreed to pay Malabu $1,092,040,000
in “full and final settlement of all its claims,
interests or rights relating to OPL245.” The
agreement also stated that the rights to the
oil block would be reallocated to Agip and
Shell.

What I don't understand here is that, does it mean that Malabu retained the oil block and still benefited from the $1,092,040,000?

Some dots aren't connecting here?

emmydeep: Why are Nigerians and Nlanders so gullible?

The 2 foreign oil companies agreed to pay $1.1 billion dollars as settlement to malabu oil and the FG authorised it, so whats the fraud here?

You see why many of you here made third class ?

Kai! Bingo! What has this got to do with all Nigerians and all Nairalanders of which I'm so sure you are one?

Perhaps you should be chained one again. I warned her not to release you, but she won't listen. Anu Udene...

Behold the THIEF in ARSEHOLE rock!!

hercules07:
Let us start with the allocation and how the oil block was got.

How does d allocation concern GEJ?

Stop dragging Jonathan to all issues.

slimming: Stop dragging Jonathan to all issues.

GEJ personally supervised the theft, so his name must be dragged into issue...

Malabu Deal: How Adoke, Ngama Abetted $1.1bn Oil Block Deal
Submitted by LEADERSHIP EDITORS on May 24, 2012 - 5:10am
Imported User:
PATIENCE AKPURU, UCHENNA AWOM

Despite frantic denials by Shell Nigeria of a round-tripping deal between it, ENI and the federal government over Oil Block 245, evidence of the clandestine deal was exclusively obtained by LEADERSHIP yesterday.

A copy of an agreement signed in April 2011, confirmed that Shell Nigeria Ultra-Deep Ltd, Shell Nigeria Exploration and Production Company Ltd, Nigerian Agip Exploration Ltd, Nigerian National Petroleum Corporation and the federal government of Nigeria indeed entered into an agreement that culminated in the payment of $1.1bn to Malabu Oil and Gas Limited.

The federal government was represented by the attorney-general of the federation and minister of Justice; the minister of state for finance; and the petroleum resources minister.

Investigations revealed how the ministers in April 2011 brokered the agreement to sell the controversial Oil Block 245 to Shell and pay Malabu Oil and Gas from the proceeds.

According to a resolution agreement reached in April 2011 between the federal government and Malabu Oil and Gas Limited, the federal government agreed to pay Malabu the sum of $1.1billion in full settlement of the claim to the oil block, provided the company discontinued all pending suits in the matter.

Apart from the agreement with Shell and ENI, the federal government also signed a separate agreement with Malabu, possibly within days of its agreement with Shell and ENI, to pay the Malabu for the oil block.

Specifically, the agreement between Shell, ENI and the federal government stated, among other things, that within five days of the grant and delivery of OPL 245, ENI’s local subsidiary, Agip, will pay the sum of $1,092,040,000 to the federal government on behalf of itself and Shell.

The twist, however, was that Malabu had surrendered the same oil block to the federal government (in an April 29, 2011 agreement) over objections by ENI that it could not close the deal with Malabu because of claims by Mohammed Abacha that the shares of the company, in which he also had an interest, had been tampered with by Dan Etete.

Details of two out of the four agreements were later filed in the Supreme Court of the State of New York by one Ednan Agaev of International Legal Consulting (ILC) when he fell out with former petroleum minister, Dan Etete, who is believed to have substantial interest in Malabu.

Agaev claimed, among other things in his affidavit, that he was the one who advised Etete to approach the federal government to restructure the deal as a way of clearing the hurdle for the Shell-ENI bid.

Under the structure, Malabu was to surrender OPL 245 to the federal government as if it was revoked. The federal government, on its part, was then to reallocate the oil block to Shell-ENI, collect the money from Shell-ENI and transfer it to Malabu.

Agaev sued Malabu on behalf of ILC over an alleged breach by Malabu to pay 6% of the “success fee,” or $65.5 million of the $1.1 billion for the sale.

Investigations showed that within one month of the signing of the deal, substantial transfers were made in favour of Malabu by the federal government on the watch of the minister of state for finance Yerima Ngama and the justice minister Mohammed Adoke.

According to one of the documents, “On May 24, 2011, the sum of One Billion, Ninety-Two Dollars was paid into depository Escrow Account No 41454193 domiciled in JP Morgan Chase Co, London.

“In a transaction that seemed to be a consideration of the subject matter, on August 16, 2011, the federal government of Nigeria through the minister of state for finance, Dr. Yerima Lawal Ngama and the attorney-general of the federation instructed the release of the sum of Four Hundred and One Million, Five Hundred and Forty Thousand Dollars (401, 540, 000 Dollars) into Account No 2018288005 in the name of Malabu Oil and Gas Limited domiciled in First Bank of Nigeria Plc and the sum of Four Hundred Million Dollars into Malabu Oil and Gas account No 3610042472 domiciled with Keystone Bank (former bank PHB Plc). JP Morgan complied with this instruction and made the transfers on August 23, 2011.”

It would be recalled that the federal government had, during the regime of Late Gen. Sani Abacha, on April 29, 1998 granted an Oil Prospecting License (OPL) to Malabu Oil and Gas Limited. On March 30, 2001, Malabu entered into a farm-in agreement with Shell Nigeria and assigned 40 per cent equity interest to Shell in the oil block.

On July 2, 2001, the federal government revoked the sale of the oil block and later, on May 23, 2002 awarded the block to Shell on a Production Sharing Licence (PSL). By December 22, 2003, the federal government granted Shell the right to exclusively operate the block as a contractor for 30 years.

Following the revocation and the execution of the PSL granted Shell, “various law suits involving FGN, Malabu and SNUD (Shell Nigeria Ultra-Deep Limited), were filed to determine disputes arising from the revocation of OPL 245 by the FGN,” part of the resolution agreement read.

On November 30, 2006, the federal government executed a settlement agreement with Malabu, admitting no liability and agreed to reallocate the oil block to Malabu. The agreement also entailed that Malabu releases the FG from all claims and suits in connection with the revocation.

Following this settlement agreement, more legal battles ensued from the SNUD to enforce the 2003 PSL granted it by the federal government. Again, on July 2, 2010, the federal government issued a letter to Malabu, reallocating the block.

It would be recalled that yesterday, LEADERSHIP published a story by Global Witness, an international watchdog, accusing Shell, ENI and the federal government of hiding behind a finger in a transaction that has further exposed the sordid corruption in Nigeria’s oil industry.

The ownership of Malabu - still hotly contested - but linked to top public office holders who allocated the oil block to themselves while they were in office has deepened concerns in many circles.

In interviews by our correspondents on Tuesday, the Nigerian National Petroleum Corporation denied knowledge of the round-tripping.

Meanwhile, the Senate president David Mark had on Tuesday directed a panel to investigate the round-tripping deal. However, the panel which had an emergency closed-door session on the issue yesterday afternoon will continue further deliberations today.

The chairman of the Senate committee on information, media and public affairs Enyinnaya Abaribe, who is also a member of the panel, told one our correspondents that the panel’s deliberation was not conclusive.

Garri the 1st:

GEJ personally supervised the theft, so his name must be dragged into issue...

Really
Making foolish outlandish allegations on the internet against Mr President(who by the way WILL NOT READ the trash you've written) will not stop him from being YOUR president.

Deal with it

If na ordinary man try am na death by hanging. Smh

Myself2: Rubbish sensational journalism just to cast GEJ in bad light.
Where is the fraud here?

Eeediots

You are a foool!

So are you saying Jonathan's government did not get involved in ensuring a felon on the run from his conviction is paid over a billion for a Nigerian asset the felon CORRUPTEDLY AWARDED HIMSELF as a minister?

Even the Jonathan government are not denying they did it but your daft self is saying it is sensational journalism!