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Another Oil Lawsuit Against Shell Alleges Fraud, Deceit, Misrepresentation

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Another Oil Lawsuit Against Shell Alleges Fraud, Deceit, Misrepresentation

…As DPR Awards Kugbo West Marginal Field In OML 29 To 7 Waves Petroleum

…Aiteo Seeks Over $2 billion in General, Other Collateral Damages

The controversy surrounding the sale of OML 29 by Shell Petroleum Development Company of Nigeria to Aiteo Eastern Exploration and Production Company Limited in 2014 may be far from being over as Aiteo has again dragged Shell to court over what it alleged as “fraud, deceit and misrepresentation” in the sale.

 

Another Oil Lawsuit Against Shell Alleges Fraud, Deceit, Misrepresentation

 

In a suit, FHC/ABJ/C8/738/2021, dated 27 July 2021 and filed before a Federal High Court in Abuja, Aiteo is accusing Shell of not fully disclosing the true position of the oil wells to it at the time of the sale, despite receiving the full amount required for the sale.

Describing Shell’s action as “fraudulent, deceitful” and a “misrepresentation,” Aiteo is seeking, among others, the payment of over $2 billion from Shell in general and other collateral damages as a result of the alleged lies and deceit at the time of the sale.

Shell, which sold its stake in OML 29 to Aiteo in 2014, is accused of transferring the Kugbo West and Okiori Marginal Fields to the Department of Petroleum Resources without disclosing this to Aiteo during the negotiations that led to the purchase of the asset.
Trouble started with a letter dated September 16, 2021, and titled, ‘2020 Marginal Field Bid Round Award Of Kugbo West Marginal Field Located In OML 29 to 7 Waves Petroleum Limited’, from 7 Waves Petroleum Limited, informing Aiteo that a section of the controversial OML 29 now belongs to 7 Waves, courtesy of the 2020 Oil Bid Round conducted by the Department of Petroleum Resources (DPR).

The letter signed by Mr. Daniel Alabi, Managing Director, 7 Waves Petroleum Limited, stated in part:

“7 Waves Petroleum Limited actively participated in the 2020 Marginal field bid round conducted by the Department of Petroleum Resources [DPR] and emerged as the awardee with 100 per cent equity interest in Kugbo West Marginal Field in OML 29 upon payment of the statutory signature bonus. The field would be jointly operated with our partner ‘Multiplan Nigeria Ltd’.
“Our firm would be glad to discuss and engage with Aiteo Eastern Exploration and Production Company Limited being the lease holder for OML 29 with the underlying objective of executing the required Farmout Agreement thus (to) enable our firm commence field development activities essential to meet the timeline set by the DPR.

“We would be glad to set up an introductory meeting to discuss the next steps, kindly notify our firm of a suitable date and time. Thank you for the assistance, we look forward to a mutually beneficial and long-lasting working relationship.”

Aiteo had earlier received the rude shock when DPR notified it of the new development in a letter dated 3rd August 2021 and signed by Edu Inyang for Director/CEO, DPR.

The letter titled, ‘2020 Marginal Field Bid Round Award Of Kugbo West Marginal Field Located In OML 29 to 7 Waves Petroleum Limited’, copy of which was sighted by THEWILL, stated in part: “Kindly be informed that Kugbo West Marginal Field located in OML 29 has been awarded to 7 Waves Petroleum Limited (7 Waves) following the 2020 Marginal Field Bid Round exercise. The award was accordingly communicated to 7 Waves through our letter DPR/tt86/vol.1/269/98 dated 3rd May 2021.

“The award letter, among others, specified that the awardee negotiate and conclude a Farm-out Agreement with the lease holder of the Oil Mining Lease {OML) 29 within ninety (90) days.

“Consequently, you are hereby requested to commence negotiation of the Farm-out Agreement of Kugbo West Marginal Field with 7 Waves, as the company has met the conditions for the award of the field. It is expected that the negotiation will be concluded within the time specified in paragraph 2 above.”

Responding to the development, Aiteo moved to the court, accusing Shell of not informing it that part of the OML 29 had actually been ceded to the Nigerian National Petroleum Corporation (NNPC), its joint partner for the oil wells, as settlement for other undisclosed obligations.

Apparently miffed by the disappointments it has been meeting with the entire OML 29 since its purchase from Shell in 2013/2014, Aiteo is seeking not only the payment of the sum of $2,135,250,000 that would have been accrued from commercial exploration and other activities if the deal had gone well but also a refund of the sum of $46, 200,000 being the payment made to Shell for the controversial portion of the oil wells that has now been allocated to 7 Waves.

Efforts to get the Media Relations Manager of Shell, Mr Bamidele Odugbesan, to comment on the latest development proved futile when filing this report on Friday as phone calls made to his phone number did not go through.

Recall that bubble had burst for Shell as a court in The Netherlands, early in the year, compelled it to compensate two Nigerian farmers for damages over 2004/2005 oil leaks. Its alleged age-long game of cheating and exploiting technicalities in the production and evacuation of crude oil to allegedly short-change not only the Federal Government, but also local operators in the oil and gas business, were also busted.

And despite all justifications and defence, Shell was also fingered in a messy missing crude oil scandal by local regulator, the Department of Petroleum Resources (DPR) through unapproved metering system, which it allegedly used to misappropriate crude and shortchange local operators.

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“US-Based Nigerian and Accomplice Sentenced to 40 Years for $9M Dark Web Drug Scheme”

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"US-Based Nigerian and Accomplice Sentenced to 40 Years for $9M Dark Web Drug Scheme"

“US-Based Nigerian and Accomplice Sentenced to 40 Years for $9M Dark Web Drug Scheme”

Mastermind Behind Multimillion-Dollar Drug Operation Jailed
A United States-based Nigerian, Oluwole Adegboruwa, 54, and his accomplice, Enrique Isong, 49, have been sentenced to a combined 40 years in prison for their roles in a sophisticated drug trafficking operation. The duo used the dark web to distribute over 300,000 oxycodone pills across multiple states, amassing $9 million in profits.


According to the United States Attorney’s Office for the District of Utah, Adegboruwa orchestrated the illegal enterprise, directing associates on procuring, packaging, and distributing the drugs to buyers who placed orders via dark web marketplaces. Payments were received in cryptocurrency, which was later converted into local currency.

The operation ran from October 2016 to May 2019 before law enforcement dismantled it. Adegboruwa was arrested and sentenced to 30 years in November 2024, while Isong received a 10-year sentence in October 2024.


In addition to his prison term, Adegboruwa was ordered to forfeit $20 million, one of the largest financial penalties ever imposed by the District of Utah. The court also mandated a lifetime of supervised release following his incarceration.


During the trial, evidence revealed that Adegboruwa was the operation’s mastermind, overseeing every aspect of the syndicate’s activities. He confessed to controlling the drug sales and managing cryptocurrency accounts used to conceal proceeds.

Prosecutors described the operation as a “continuing criminal enterprise,” with Adegboruwa employing a team to procure pharmacy-grade oxycodone pills, package them, and ship orders to customers across the U.S.


Jonathan Pullen, Special Agent in Charge of the DEA Rocky Mountain Field Division, praised the verdict, highlighting the agency’s commitment to dismantling drug networks, even those operating in the clandestine world of the dark web.
“Adegboruwa’s criminal enterprise was complex, sophisticated, and generated millions in profits concealed in cryptocurrency. This sentencing sends a clear message: drug traffickers have no safe haven, not even in the dark web’s hidden corners,” Pullen said.


The sentencing serves as a grim warning to those exploiting technology for illicit activities, emphasizing that law enforcement agencies are vigilant in uncovering and prosecuting such crimes.

 

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“Ibadan Funfair Stampede: 35 Children Dead, Tinubu Orders Probe Amid National Mourning”

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"Ibadan Funfair Stampede: 35 Children Dead, Tinubu Orders Probe Amid National Mourning"

“Ibadan Funfair Stampede: 35 Children Dead, Tinubu Orders Probe Amid National Mourning”


Sadly, a children’s funfair in Ibadan turned into a catastrophe on Wednesday, claiming the lives of 35 children and leaving six others critically injured in a devastating stampede. The event, held at Islamic High School, Basorun, was organized by Prophetess Naomi Silekunola, a former queen of the Ooni of Ife, and Oriyomi Hamzat, an Ibadan-based broadcaster.


Despite provisions made for 5,000 attendees, over 7,500 participants flooded the venue, leading to overcrowding. The event spiraled out of control when the gates were opened to the surging crowd, causing a deadly rush that trampled many, including children. Eyewitnesses recounted harrowing scenes as parents and organizers scrambled to save lives amidst the chaos.


The Oyo State Police Command has detained seven individuals, including Silekunola and the school principal, Fasasi Abdulahi, as investigations into the tragedy unfold. The case has been escalated to the State Criminal Investigation Department’s Homicide Section for a thorough inquiry.

President Bola Tinubu expressed deep sorrow over the tragedy, emphasizing the need for a comprehensive review of safety protocols for public events. He has ordered a full investigation and urged the Oyo State Government to ensure such incidents never occur again.

The Ooni of Ife, Oba Adeyeye Ogunwusi, and other leaders have also extended their condolences. The Ooni’s palace highlighted Silekunola’s history of philanthropy but called for stricter adherence to safety measures in future initiatives.


Parents who brought their children to the event shared gut-wrenching accounts of the stampede. “For almost five minutes, I couldn’t find my daughter. People were trampling over us,” one parent recounted. Survivors and grieving families are left grappling with the shock and trauma of the incident.


As the nation mourns, there is a growing demand for stricter enforcement of safety standards at public gatherings. This tragedy serves as a sobering reminder of the importance of crowd control and preparedness in safeguarding lives.


In the aftermath, the focus shifts to ensuring justice for the victims and implementing reforms to prevent similar tragedies. As Prophetess Silekunola and other organizers face scrutiny, the tragedy underscores the urgent need for better planning and safety in large-scale events, particularly those involving children.

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Ogun 1 Customs Command, NASRE Forge Stronger Ties for National Development and Border Security

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Ogun 1 Customs Command, NASRE Forge Stronger Ties for National Development and Border Security

The Ogun 1 Area Command of the Nigeria Customs Service (NCS) recently hosted the Nigerian Association of Social and Resourceful Editors (NASRE) at its headquarters, marking a significant step towards strengthening partnerships aimed at enhancing border security, trade facilitation, and public awareness.

During the meeting, NASRE extended its congratulations to Comptroller Mohammed Shuaibu on his recent appointment as the Customs Area Controller of Ogun 1 Command. The association commended his leadership capabilities and expressed confidence in his ability to elevate the command’s operational standards.

In his welcome address, the Public Relations Officer of the command, Mr. Hammed Bujoye Oloyede, reaffirmed Comptroller Shuaibu’s dedication to the command’s core objectives, which include revenue generation, securing Nigeria’s borders, and streamlining trade operations.

“Comptroller Shuaibu’s leadership is driven by innovation, collaboration, and active stakeholder engagement, especially with border communities. These principles are critical to achieving long-term growth and security in our operations,” Mr. Oloyede remarked.

He further stressed the importance of forming alliances with professional organizations like NASRE to ensure accurate information dissemination and to foster public trust in the Customs Service’s activities.

NASRE’s Public Relations Officer, Adeyemi Obadimu, responded by expressing the association’s enthusiasm for collaborating with the Ogun 1 Command on media advocacy and public enlightenment initiatives. He emphasized NASRE’s commitment to promoting ethical journalism and transparency, values that align with the Customs Service’s mission.

“This partnership will enhance public understanding of trade policies, border security, and economic growth while strengthening the relationship between the Customs Service and the public,” Mr. Obadimu stated.

The NASRE team underscored the vital role of the media in educating the public about the challenges and successes of the Nigeria Customs Service, particularly in its fight against smuggling and efforts to maintain national security.

This collaboration is expected to foster a more informed public and a stronger synergy between stakeholders in promoting national development.

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