Shell locked in legal battle with major Nigerian oil producer
The standoff with Aiteo adds to the headaches facing Shell’s operations in the country
Royal Dutch Shell and seven banks have accused one of Nigeria’s largest oil producers of defaulting on loan repayments that stand at more than $900m and are locked in a court battle to reclaim the money, legal documents show.
The previously unreported impasse stems from a deal that Aiteo Eastern E&P did six years ago to purchase a big interest in one of the nation’s most prized oil blocks and a pipeline for $2.4bn. Zenith Bank, Fidelity Bank, Guaranty Trust Bank and other Nigerian lenders lent the company $1.5bn to support the acquisition, while Shell — the former operator of the assets — provided $504m in financing...
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