Connect with us


FG sues Shell for allegedly stealing $407m crude oil



FG sues Shell for allegedly stealing $407m crude oil

The Federal Government has sued Shell Petroleum Development Company, SPDC and a sister company, Shell Western Supply and Trading Limited over alleged oil theft between 2013 and 2014.

The government is demanding the companies pay the sum of $406.75m as the shortfall of money they failed to pay into the federal government account with the Central Bank of Nigeria.

According to court papers filed by government lawyer, Prof. Fabian Ajogwu, Shell is being accused of not declaring or under-declaring crude oil shipments during the period, following forensic analysis of bills of lading and shipping documents.

The federal government was said to have engaged a consortium of experts based in the United States of America, who were able to track the global movements of the country’s hydro-carbons including crude oil and gas with the main purposes of identifying the companies engaged in the practices that led to missing  revenues from crude oil and gas exports sales to different parts of the world.

In the process of reconciling the export records from Nigeria, with the import records at ports in the United States of America, mind boggling discrepancies were discovered.

Read also: Proposed sale of NLNG causes stoppage of contracts, uneasy calm

According to court papers, the federal government averred that on 6th of January, 2013 the defendants lifted crude oil  using the vessel AUTHENTIC and shipped same to BP Oil Supply of 28301 Ferry  Road, Warrenville, Illinois, USA at the port of Chester, Pennsylvania, United States of America. The shipment had the Bill of lading number ALMYSVDM161212A3.

The shipment was said not to have been declared to the relevant authorities in Nigeria, resulting in the shortfall of 660,712 barrels of crude oil in the value of $72,678,320 as revenue to the Government.

On 3 January, 2013, Shell was also said to have lifted crude oil that resulted in the shortfall of 979,031 barrels  in the value of $107,693,410 amongst others.

The FG was said to have written to Shell on 21 January, 2016 to notify it of the discrepancies and demanding for clarification and necessary documentation preparatory for payment of the shortfall. The companies however failed to respond.

Consequently, the federal government is seeking a court order to compell the two companies to pay into the Federal government of Nigeria account with the Central Bank of Nigeria, the sum of USD 406,751,070, while also demanding for 21 interest payment per annum on the sum of $406,751,070 until the entire sum is liquidated.

Aside this, the federal is also asking for general exemplary damages in the sum of $406,751,070 and the cost of instituting the legal action.

The case has been fixed for 20th October for mention by the presiding judge, Mojisola Olatoregun Isola.




RipplesNigeria …without borders, without fears

Join the conversation


Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now