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FG files suit against Chevron, ENI, other oil firms over alleged undeclared crude cargoes

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A Federal High Court in Lagos will on September 30, 2016 hear the suit filed by the federal government against Nigerian subsidiaries of United States multinational Chevron, British-Dutch Shell, Italian ENI’s Agip, France’s Total and Brasoil of Brazilian Petrobas.

The government had filed the suit against the oil companies for $12.7 billion of crude oil that was allegedly exported illegally to the US between 2011 and 2014.

Officials familiar with the cases said Nigeria’s government alleged that the companies did not declare more than 57 million barrels of crude oil shipments. That was deduced from audits of declared exports and what was unloaded in the US.

Some shiploads registered less when they left Nigeria and more on reaching the US, while some entire shiploads were undeclared in Nigeria, said the officials, who spoke on condition of anonymity because the cases still are in court.

According the Associated Press (AP) Professor of Law, Fabian Ajogwu is representing the Nigerian government in the case.

Nigeria was Africa’s largest oil producer until militant attacks cut production and Angola overtook it in March.

The cases could provoke new anger against oil companies already accused of polluting farmland and fishing grounds. Local frustration has contributed to an armed movement in the oil-producing Niger Delta, where militants are demanding the multinationals pull out.

The United States was the biggest importer of Nigerian oil until it began exploiting its own shale oil reserves, though Nigerian exports to the US have increased six-fold this year, according to OPEC.

Michael Kanko confirmed that his US-based ImportGenius database was used by attorneys to confirm declarations made to US customs by shippers and importers.

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