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Nigeria Loses U.S.$1.7 Billion Oil Suit Against JP Morgan

Nigeria has lost its court battle against JP Morgan Chase Bank over its role in the transfers of hundreds of millions of dollars to former oil minister Dan Etete, accused of corruption. 

In the suit, Nigeria was claiming more than U.S.$1.7 billion for the bank's role in the controversial deal.

In 2011, Shell and Eni paid U.S.$1.3 billion to the Nigerian government for the acquisition of an oil block prospecting licence. However, it was alleged that about U.S.$1.1 billion of that amount ended up in the account of Malabo Oil and Gas, which was owned by Etete. It is alleged that the funds were used to pay political bribes.

JP Morgan in a statement said that the judgment reflects its commitment to acting with high professional standards in every country in which it operates. 

The London case dates back to 1998 when Nigerian military ruler Sani Abacha awarded the offshore oilfield licence, OPL 245, to a company that Etete owned. 

Shell and Eni have however consistently denied being aware that the money would be used for bribes, but a report alleged that senior Shell executives were informed. 

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