In the Matter of Royal Dutch Shell plc (2010)

• Case Name
• In the Matter of Royal Dutch Shell plc (2010)

• Date Filed
• 11/04/2010

• Enforcement Agency
• SEC

• Countries
• Nigeria

• Foreign Official
• Nigerian Customs Service officials.

• Date of Conduct
• 2002 to 2005

• Nature of Business
• Royal Dutch Shell plc (“Shell”) is an English-chartered company which focuses on oil, gas, and power production and exploration.  Shell’s wholly owned subsidiary, Shell International Exploration and Production Inc. (“SIEP”), a Delaware company, acted on behalf of Shell to obtain and run business in Nigeria connected to Shell’s Bonga Project. 

• Influence to be Obtained
• From 2002 to 2005, SIEP allegedly authorized dealings with companies acting as customs brokers and freight forwarders, involving suspicious payments to Nigerian customs officials.  Through these payments, Shell allegedly obtained preferential treatment during the customs process in Nigeria relating to Shell’s Bonga Project.
  
  While the freight forwarder was not specifically identified by the SEC, the deferred prosecution agreement in the related DOJ criminal proceeding and the DOJ’s subsequent press release indicate that Panalpina World Transport (Holding) Ltd. (“Panalpina”) was the freight forwarder that allegedly made suspicious payments on Shell’s behalf.

• Enforcement
• On November 4, 2010, without admitting or denying the SEC’s findings, Shell consented to entry of an order requiring it to cease‑and‑desist from violating the anti‑bribery, books and records, and internal controls provisions of the FCPA.  Under the order, Shell must pay disgorgement and pre-judgment interest for a total of $18,149,459.
  
  SNEPCO settled related charges with the DOJ on November 4, 2010.  

• Amount of the Value
• Approximately $3.5 million.

• Amount of Business Related to Payment
• Approximately $14 million.

• Intermediary
• Agents, subsidiaries, subcontractor, freight forwarder.

• Citizenship of Parent Entity
• United Kingdom

• Total Sanction
• $ 18,149,459

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 48,149,459

• Related Enforcement Actions
• United States v. Shell Nigeria Exploration and Production Company Ltd.  (S.D. Tex. 2010)
  

Royal Dutch Shell plc

• Citation
• In the Matter of Royal Dutch Shell plc & Shell Int’l Expl. & Prod. Inc., Admin. Proc. File No. 3-14107 (Nov. 4, 2010).

• Date Filed
• 11/04/2010

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Anti-Bribery
  • Books-and-Records
  • Internal Controls

• Other Statutory Provision
• None

• Disposition
• Cease-and-Desist Order

• Defendant Jurisdictional Basis
• Issuer

• Defendant's Citizenship
• United Kingdom