JP Morgan Chase has won a $1.7 billion London High Court lawsuit against Nigeria over a disputed oilfield agreement from 2011.
The civil lawsuit, which was heard earlier this year, concerns Shell’s and Eni’s purchase of Nigeria’s offshore OPL 245 oilfield.
Nigeria said JP Morgan was “grossly negligent” in transferring monies paid by energy companies to an escrow account controlled by a business linked to the country’s former oil minister, Dan Etete, following directions from sanctioned government officials.
The transactions, according to Nigeria, put JP Morgan in violation of its Quincecare responsibility, which requires banks to refuse a customer’s orders if doing so will enable fraud against that customer.
In a judgment issued on Tuesday, a London High Court judge concluded no such breach occurred.
In an emailed statement, a spokeswoman for the bank said, “This ruling shows our commitment to acting with high professional standards in every country we operate in, and how we are prepared to vigorously defend our actions and reputation when they are brought into question.”
The damages sought include money paid to Etete’s company, Malabu Oil and Gas, in three installments between 2011 and 2013, totaling over $1.7 billion, plus interest.
The offshore oilfield license, OPL 245, was issued to a corporation owned by Etete by Nigerian military dictator Sani Abacha in 1998. Following Nigerian administrations fought Etete’s rights to the field for many years until an agreement was achieved in 2011 to end the impasse by selling the field to Shell and Eni.
