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

• Case Name
• United States v. Shell Nigeria Exploration and Production Company Ltd.  (S.D. Tex. 2010)

• Date Filed
• 11/04/2010

• Enforcement Agency
• DOJ

• Countries
• Nigeria

• Foreign Official
• United States v. Shell Nigeria Exploration and Production Company Ltd.  (S.D. Tex. 2010)

• Date of Conduct
• 2004 to 2006

• Nature of Business
• Shell Nigeria Exploration and Production Company Ltd. (“SNEPCO”) is a Nigerian subsidiary of Royal Dutch Shell plc (“Shell”), an English-chartered company headquartered in the Netherlands.  SNEPCO endeavored to explore and produce oil in a deepwater project in Nigeria.

• Influence to be Obtained
• Between 2004 and 2006, SNEPCO paid bribes to its subcontractors and agents for customs clearance services with the knowledge and intent that some or all of the money was to reimburse the subcontractors for money paid to Nigerian customs officials to import materials and equipment into Nigeria.  While the freight forwarder was not specifically identified in the DOJ’s complaint, the complaint alleges that a Swiss based freight forwarder provided a service known as “Pancourier.”  This was a proprietary service provided by Panalpina World Transport (Holding) Ltd. (“Panalpina”) and its subsidiaries.
   
  The bribes were falsely characterized by SNEPCO in its internal books and records as legitimate customs clearance charges which were, in turn, consolidated into Shell’s books, records, and accounts.
   

• Enforcement
• On November 4, 2010, the DOJ and SNEPCO entered into a deferred prosecution agreement, under which SNEPCO agreed to pay a penalty of $30 million, review and revise its existing internal controls, policies, and procedures as necessary, and provide a yearly report to the DOJ on the remediation and implementation of its compliance program and internal controls, policies, and procedures for a period of three years.
   

  Shell settled related charges with the SEC on November 4, 2010. 
   

  Also on November 4, 2010, Panalpina and its subsidiaries settled related charges with the SEC and DOJ.  Two of Panalpina’s other customers in the oil exploration and production industry also pleaded guilty to and settled related charges with the DOJ and SEC on the same day.

   
   

• Amount of the Value
• Approximately $2 million.

• Amount of Business Related to Payment
• Approximately $2 million.

• Intermediary
• Freight forwarder; Subcontractor; Agent.

• Total Sanction
• $ 30,000,000

• Compliance Monitor
• No

• Reporting Requirements
• No

• Case is Pending?
• No

• Total Combined Monetary Sanction
• $ 48,100,000

• Related Enforcement Actions
• In the Matter of Royal Dutch Shell plc (2010)
  

Shell Nigeria Exploration and Production Company Ltd.  

• Citation
• United States v. Shell Nigeria Expl. & Prod. Co. Ltd., No. 4:10-cr 767 (S.D. Tex. 2010).

• Date Filed
• 11/04/2010

• Filed Under Seal
• No

• FCPA Statutory Provision
• • Aiding and Abetting: Books-and-Records
  • Conspiracy: Anti-Bribery
  • Conspiracy: Books-and-Records

• Other Statutory Provision
• None

• Disposition
• Deferred Prosecution Agreement

• Defendant Jurisdictional Basis
• Territorial Jurisdiction

• Defendant's Citizenship
• United States