So Did Eni and Shell Pay a $1.3-billion bribe for Nigeria oil?

[TraderTate + 186]

Interesting story that puts the Eni, Shell corruption scandal in Nigeria into a more colorful light. I guess the question is how we define bribery...

https://www.wsj.com/articles/inside-the-bribery-scandal-thats-sweeping-through-the-oil-industry-1518543648

[Rodent + 1,424]

"persuade (someone) to act in one's favor, typically illegally or dishonestly, by a gift of money or other inducement."

[TraderTate + 186]

so what's your verdict, then?

[TraderTate + 186]

While you mull that over, consider this: 

The seed was planted at a dinner in Milan featuring a senior Eni exec and senior Shell officials. They approved "an arrangement that allowed them to pay the government while knowing most of the money would be transferred to a company controlled by Dan Etete--the ex-oil minister" that they met that night. 

Sounds like a 'favor' to me. A $1.3-billion favor

[Adam Varga + 123]

[Vlad Kovalenko + 115]

So money basically went to politicians. No doubt it is a bribery. 

[Rodent + 1,424]

I don't even understand that. But cool chart nonetheless. So Eni and Shell paid money for what kind of favor, exactly? Sounds more to me like Nigeria did the wrongdoing. 

[Missy + 43]

Nigeria is a corrupt, corrupt place that can't even keep the lights on for its citizens. But yeah, let's go ahead and blame those rascaly oil companies.

[Vlad Kovalenko + 115]

Who gave the money to whom? They didn't have to accept their "favor". 

[TraderTate + 186]

15 hours ago, Vlad Kovalenko said:

Who gave the money to whom? They didn't have to accept their "favor". 

Either way, Shell and Eni should be accountable. They knew what they were doing; they knew who they were meeting in Milan and where the money was going. Let's not be naive. I don't even think this is a gray area. 

[Selva + 252]

Far away from a grey area. Not even close. This case is crystal clear as well as their responsibility in all of this. 
 

[Ouallan + 2]

The recent Afghanistan events reminded me of this old case. Eni and Shell, two of the world's largest energy companies, have been accused of wrongdoing in the purchase of an offshore oilfield in Nigeria in 2011. The $1.3 billion deal was the biggest bribery scandal in the industry's history.  For me, it looks like more a political game, where every side is trying to get as much value from this conflict as possible. I am always trying as far as possible from companies like these, and using only safe payment systems such as https://maxpay.com/, to avoid getting scammed by this giants.

Edited August 30, 2021 by Ouallan

[Sebastian Meana + 278]

On 2/13/2018 at 9:22 PM, TraderTate said:

Interesting story that puts the Eni, Shell corruption scandal in Nigeria into a more colorful light. I guess the question is how we define bribery...

https://www.wsj.com/articles/inside-the-bribery-scandal-thats-sweeping-through-the-oil-industry-1518543648

Is really that surprising? Dictatorships where the wealth doesnt come fron their citizens are easily bribeable by externals

And also, If Total, Eni, Repsol, BP, Shell, didnt extract most or at least some of the oil the produce they would have to dedicate themselves to refining, and buying oil, and refining it and selling it is a razon thin profits businesses

Total and Valero have similar refining capacities and throughputs, Total had in 2019 an annual revenue of 176 billion dollars and a gross profit of 60 billion, 34% profit margin, sure before dividend payment, taxes, royalties , interests but you get the idea, their net income was around 6%.

Valero had in 2019 108 billion dollar in revenue and 4.7 billion dollar gross profit, 4.3% profit margin, operating income for valero is like half of that

[ronwagn + 6,290]

On 2/13/2018 at 6:33 PM, TraderTate said:

While you mull that over, consider this: 

The seed was planted at a dinner in Milan featuring a senior Eni exec and senior Shell officials. They approved "an arrangement that allowed them to pay the government while knowing most of the money would be transferred to a company controlled by Dan Etete--the ex-oil minister" that they met that night. 

Sounds like a 'favor' to me. A $1.3-billion favor

The money went to the Big Guy. 

[ronwagn + 6,290]

On 2/14/2018 at 10:59 AM, TraderTate said:

Either way, Shell and Eni should be accountable. They knew what they were doing; they knew who they were meeting in Milan and where the money was going. Let's not be naive. I don't even think this is a gray area. 

Yes, but someone would eventually develop it and Nigeria has a history of corruption and would still funnel the money to their corrupt people. Better the West get it than China or Russia.