A London court has ruled that Nigeria was not defrauded in the $1.7bn claim against United States bank, JP Morgan Chase for its role in a disputed 2011 oilfield deal.
![BREAKING: OPL 245: Nigeria Loses $1.7bn Case Against JP Morgan BREAKING: OPL 245: Nigeria Loses $1.7bn Case Against JP Morgan](http://odunews.com/wp-content/uploads/2022/06/Nigeria-JP-Morgan-Case.jpg)
The civil suit filed in the English courts relates to the purchase by energy majors Shell and Eni of the offshore OPL 245 oilfield in Nigeria
In the judgement delivered on Tuesday, the Business and Property Courts of England and Wales Commercial Court said there was no proof that Nigeria was defrauded in the deal.
Nigeria had alleged that JP Morgan was, “grossly negligent” in its decision to transfer funds paid by the energy majors into an escrow account to a company controlled by the country’s former Oil Minister, Dan Etete, instead of into government coffers.
However, the bank rejected Nigeria’s claims, maintaining that all due processes were followed and money laundering checks were done, arguing that allegations of fraud only came up after a new government took over in Nigeria.
In the judgement, Sara Cockerill ruled that the Nigerian government could not prove that it been defrauded, saying it may be that with the benefit of hindsight, “JPMorgan would have done things differently” but declared that “none of these things individually or collectively amount to triggering and then breaching” the bank’s duty of care to its client.
The London case dates back to 1998 when Nigerian military ruler Sani Abacha awarded the offshore oilfield licence, OPL 245, to a company Etete owned.
The $20 million price tag – of which Etete paid about $2 million, according to court documents – was widely viewed by industry experts as too low given the block was expected to yield billions of dollars of crude, although it remains undeveloped.
Subsequent Nigerian administrations contested Etete’s rights to the field, triggering years of legal wrangling until a deal designed to end the battles was struck in 2011.
Etete’s company Malabu Oil and Gas handed the undeveloped OPL 245 back to Nigeria as part of a resolution agreement involving Shell and Eni.
To complete the deal, Shell and Eni paid a signature bonus of about $200 million directly to the Nigerian government and then deposited $1.1 billion in the Nigerian government’s escrow account with JP Morgan, court documents show.