Arcadia Petroleum Limited and its former Chief Executive, Peter Bosworth, have been identified as recipients of millions of pounds from the controversial $1.3 billion Malabu oil deal, according to a report by The Times, a leading UK newspaper.
Court documents reportedly name Bosworth and Arcadia Petroleum among the final beneficiaries of funds tied to the 2011 acquisition of OPL 245, one of Africa’s most valuable offshore oil blocks, by Royal Dutch Shell and Eni. The deal, which has been marred by allegations of corruption, is already the subject of criminal proceedings in Milan and a civil lawsuit in the UK filed by the Nigerian government.
Nigeria’s Legal Action to Recover Funds
The Nigerian government has launched multiple legal actions to reclaim funds allegedly misappropriated in the deal. According to the report, Bosworth and Arcadia Petroleum received $16 million originating from the transaction. Nigerian authorities have stated they are investigating the payments and may take legal action to recover the money.
While Bosworth and Arcadia Petroleum have been named in all three cases, they are not currently defendants in any of the ongoing litigation. A lawyer representing Bosworth has stated that no legal proceedings have been initiated against him concerning OPL 245.
The Bosworth Controversy
The Times reports that leaked emails and financial records compiled by Italian prosecutors reveal direct ties between Bosworth, Arcadia Petroleum, and former Nigerian Petroleum Minister, Chief Dan Etete—a key figure in the Malabu scandal. The documents indicate that Bosworth:
•Advised Etete on matters relating to OPL 245.
•Arranged flights and hotel stays for Etete for several years leading up to the 2011 deal.
•Used money received from the Malabu deal to offset debts to Arcadia after purchasing a luxury Swiss château.
Bosworth, who joined Arcadia Petroleum in 1992 and became CEO in 2000, left the company in 2013. He was later sued by Arcadia over an alleged $335 million fraud, which he has denied.
Responding to the allegations, Bosworth stated he had “no reason to believe anything was either unlawful or corrupt” regarding his dealings with Etete. He admitted to offering Etete informal advice but insisted he was not involved in the OPL 245 transaction.
The OPL 245 Deal: One of Africa’s Largest Oil Corruption Scandals
OPL 245 is considered one of Africa’s most oil-rich blocks. The scandal traces back to 1998, when Dan Etete, while serving as Nigeria’s Petroleum Minister, awarded the oil block to Malabu Oil and Gas, a company he secretly controlled. The Nigerian government has since argued that the award was corrupt.
Shell initially acquired an interest in 2001, but legal disputes between the oil giant, Malabu, and the Nigerian government stalled operations for over a decade. The conflict culminated in a 2011 settlement, where Shell and Eni paid $1.3 billion to the Nigerian government to secure full ownership of OPL 245. However, more than $800 million of the payment was transferred to Malabu, with allegations that some of it was used to pay bribes to high-profile officials, including former Nigerian President Goodluck Jonathan, who has denied any wrongdoing.
Nigeria’s recent legal claim in London seeks to recover funds lost to bribery and damages over what the government describes as a “fraudulent and corrupt scheme”.
As investigations continue across multiple jurisdictions, the Malabu scandal remains one of the largest oil-related corruption cases in African history.
