Petroleum Development Company of Nigeria Limited and its surrogate Shell
Western Supply & Trading Limited over alleged crude oil theft.
The amount, according to court papers in Lagos, represents the shortfall
of the money paid by the multinational oil firm in the account of the
Nigerian government with Central Bank of Nigeria, for crude oil lifted in
2013 and 2014.
Government lawyer, Professor Fabian Ajogwu accused the Anglo-Dutch company
of not declaring or under-declaring crude oil shipments during the period,
following forensic analysis of bills of lading and shipping documents,
Ajogwu, armed with sworn affidavits of three United States of America
based professionals, claimed that Shell cheated Nigeria of the revenue.
Among the three professionals employed by the Federal Government of
Nigeria are: Professor David Olowokere, a US citizen who is the lead
Analyst at Loumos Group LLC, a technology and oil and gas auditing firm
based in United States of America and Jerome Stanley, a counsel in the
law firm of Henchy &Hackenberg, a law firm based in United States of
America and head of the legal team engaged by Loumo Group LLC.
The third professional is Micheal Kanko a citizen of the USA and resident
of the state of Arizona , who is the founder and the current Chief
Executive Officer of Trade Data services Company.
The consortium of experts was 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 reconciling the export records from Nigeria, with the import records at
ports in the United States of America, the experts found mind boggling
discrepancies.
The Nigerian government averred for instance 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.
This particular shipment was not 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 and its surrogate company lifted crude oil that
resulted in the shortfall of 979,031 barrels in the value of $107,693,410
On the 14th of December, 2014, Shell also lifted crude oil using the
vessel EAGLE TUSCON and shipped same to Shell Deer Park of 5900 Texas
225,Deer Park, TX77536,USA at the port of Houston, Texas, United States of
America with Bill of lading number AETK0909US14.
The shipment was not declared to the relevant authorities, resulting in
the shortfall of 499,048 barrels of crude oil in the value of $54,895,280
as revenue to the Federal Government.
Shell, with its allied company, was also alleged at three different times
to have shipped crude on board EAGLE TUSCON, EAGLE SEVILLE, OVERSEAS
EVERGLADES, that resulted in the shortfall of 3,697,737 barrels of crude
oil.
This brings the total value of all the shortfall to $406,751,070 On 21
January ,2016 the Federal government through its legal representative
wrote a letter to the defendants drawing their attention to the
discrepancies.
Government asked them to clarify the discrepancies, with documentation, as
a prelude to the repayment of the revenues and debt they now owe the
government.
Till date Federal government has not received from the defendants any
payment pursuant to the said letter nor the requested documents.
Nigeria’s government averred that it has suffered huge and enormous
financial loss as a result of the defendants under-declaration of the
value of the crude oil they lifted and exported to the United States of
America. Nigerian government now seeks a court order compelling 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 being the total value
of the missing revenue from the shortfall /undeclared/under -declared
crude oil shipments of the country, made by the companies to United States
of America.
Government also demands interest payment at 21% per annum on the sum of
$406,751,070 until the entire sum is liquidated. Shell in addition is
being asked to pay general exemplary damages in the sum of $406,751,070
and the cost of instituting the legal action.
The presiding judge, Mojisola Olatoregun Isola has adjourned till 20th of
October 2016 for mention of the case. Nigeria has also sued Chevron, Total
and Agip asking for a total of $12.7 billion over alleged non-declaration
of some 57 million barrels of crude shipped to the United States between
2011 and 2014.
The oil firms are among up to 15 oil majors targeted by the Nigerian
government for the recovery of $17 billion in deprived revenue.