We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Shell and Eni Slapped with Corruption Charges in Nigeria
Read MoreHide Full Article
Oil giants Royal Dutch Shell and Eni SpA (E - Free Report) recently faced criminal charges from Nigeria’s anti-graft agency over the $1.1 billion acquisition of Africa’s richest oil blocs in 2011.
The court filing alleges that the companies paid a bribe of $801 million to the former Oil Minister of Nigeria, Dan Etete and his allies for the purchase of Oil Prospecting License (OPL) 245. The government received only $210 million from the deal. The Nigerian Court has seized the oilfield assets from the companies and ordered the transfer of oil blocs to the government.
The Inside Story
OPL 245 is considered to be one of the richest oil blocs in Nigeria comprising over nine billion barrels of crude oil. Former Nigerian President, Goodluck Jonathan had handed over OPL 245 to Malabu Oil, a company with questionable credentials secretly established by Dan Etete. Since Malabu Oil was thought to be a fraudulent company, Etete decided to cash in on the bloc.
Through various middlemen, Shell and Eni were asked to purchase the bloc. Due to Etete’s scandalous records, former Justice Minister Adoke became the mediator for the transaction.
The companies denied of being involved in the crime and claimed that the money was paid into the Nigerian government account. Various investigations however, reveal that the companies were guilty. Several senior executives of both the companies have faced a trial over these corruption allegations.
About Royal Dutch Shell
Headquartered in Netherlands, Shell is one of the largest integrated energy companies, engaged in the production, refining, distribution and marketing of oil and natural gas. The company carries a Zacks Rank #2 (Buy).
Shell has outperformed the Zacks categorized Oil & Gas-International integrated industry over the prior three months. During the aforesaid period, the company’s shares fell 0.5% while the broader industry declined around 1.5%.
About Eni SpA
Based in Rome, Italy, Eni’s major business segments are Exploration and Production (E&P), Gas and Power, and Refining and Marketing. The company presently carries a Zacks Rank #2.
Over the last three months, shares of Eni rallied 5.5% compared to the 1% drop witnessed by the Zacks categorized Oil & Gas International Integrated industry.
Other Stocks to Consider
Other favorably placed stocks in the broader industry include Semgroup Corporation and Crescent Point Energy Corporation . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Semgroup posted average positive earnings surprise of 79.10% in the last four quarters.
Crescent Point reported a positive earnings surprise in each of the trailing four quarters, the average being 127.16%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Shell and Eni Slapped with Corruption Charges in Nigeria
Oil giants Royal Dutch Shell and Eni SpA (E - Free Report) recently faced criminal charges from Nigeria’s anti-graft agency over the $1.1 billion acquisition of Africa’s richest oil blocs in 2011.
The court filing alleges that the companies paid a bribe of $801 million to the former Oil Minister of Nigeria, Dan Etete and his allies for the purchase of Oil Prospecting License (OPL) 245. The government received only $210 million from the deal. The Nigerian Court has seized the oilfield assets from the companies and ordered the transfer of oil blocs to the government.
The Inside Story
OPL 245 is considered to be one of the richest oil blocs in Nigeria comprising over nine billion barrels of crude oil. Former Nigerian President, Goodluck Jonathan had handed over OPL 245 to Malabu Oil, a company with questionable credentials secretly established by Dan Etete. Since Malabu Oil was thought to be a fraudulent company, Etete decided to cash in on the bloc.
Through various middlemen, Shell and Eni were asked to purchase the bloc. Due to Etete’s scandalous records, former Justice Minister Adoke became the mediator for the transaction.
The companies denied of being involved in the crime and claimed that the money was paid into the Nigerian government account. Various investigations however, reveal that the companies were guilty. Several senior executives of both the companies have faced a trial over these corruption allegations.
About Royal Dutch Shell
Headquartered in Netherlands, Shell is one of the largest integrated energy companies, engaged in the production, refining, distribution and marketing of oil and natural gas. The company carries a Zacks Rank #2 (Buy).
Shell has outperformed the Zacks categorized Oil & Gas-International integrated industry over the prior three months. During the aforesaid period, the company’s shares fell 0.5% while the broader industry declined around 1.5%.
About Eni SpA
Based in Rome, Italy, Eni’s major business segments are Exploration and Production (E&P), Gas and Power, and Refining and Marketing. The company presently carries a Zacks Rank #2.
Over the last three months, shares of Eni rallied 5.5% compared to the 1% drop witnessed by the Zacks categorized Oil & Gas International Integrated industry.
Other Stocks to Consider
Other favorably placed stocks in the broader industry include Semgroup Corporation and Crescent Point Energy Corporation . Both the companies sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Semgroup posted average positive earnings surprise of 79.10% in the last four quarters.
Crescent Point reported a positive earnings surprise in each of the trailing four quarters, the average being 127.16%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017? Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>