American Bank, JP Morgan Chase, in $65,500,000 Arbitration Case over Nigerian Oil Block



Adnan Agaev, a former Soviet diplomat, hired by Malabu Oil and Gas recently settled a $65.5m arbitration case over the Nigerian oil block OPL245 with the American Bank, JP Morgan Chase, behind closed doors.


Malabu Oil and Gas, a company associated with Dan Etete, had been awarded OPL245 in 1998 when Dan Etete was Nigeria’s petroleum minister under Sani Abacha. It is reported that Malabu was established a few days before the said award. Also, Malabu only paid $2m of the $20m signature bonus for the oil block.


In 2001, the Obasanjo government revoked the Malabu deal, and in 2002 the Obasanjo government re-awarded the oil block to Shell Nigeria Exploration and Production Company Limited. Shell soon commenced exploration in the block. Malabu sued the government, and after a lot of litigation, government reinstated Malabu as the owner of the block in 2006.


Malabu proceeded by hiring Mr Agaev to find investors. Mr Agaev, in turn, hired a subcontractor, Emeka Obi, who brought in Nigeria Agip Exploration Limited. Finally, in 2011, Agip and Shell agreed to pay $1.092 billion for the oil block. The $1.092 billion deal was arranged in such a way that Agip and Shell paid the sum to the Nigreian government which then paid $800m to Malabu. Agip's payments to the government were made through an escrow arrangement with JP Morgan Chase.

Case Type


Money Involved

Web References

No References
Be sure to read our Disclaimer
  • Sponsored by:

Copyright © 2018 WANGONeT. All Rights Reserved