Malabu oil scandal: ENI’s defamation lawsuit, bears journalist the costs

A ruling was made by an Italian court in favor of the defendants, dismissing ENI’s defamation lawsuit against investigative journalist Claudio Gatti and media company Società Editoriale Il Fatto SpA concerning the Malabu oil scandal. On December 7, 2024, Justice Francesca Giacomini of the Court of Rome concluded that the publication of truth cannot be deemed defamatory and ordered ENI to bear the costs.

ENI SpA, represented by attorneys Sara Biglieri, Luca De Benedetto, and Roberto Fabio Lipari, accused Mr. Claudio Gatti and Il Fatto SpA of defamation in the 2019 civil case (Case No. 67819). The lawsuit was prompted by the release of the book ENIGATE, which reported on the Malabu scandal.

Represented by lawyers Caterina Malavenda and Valentino Sirianni, the defendants, Claudio Gatti, a U.S.-based investigative journalist, and Società Editoriale Il Fatto SpA, faced a claim for compensation from ENI for alleged defamation damages.

Malabu Oil & Gas Ltd, granted an oil exploration concession in 1998 by Sani Abacha, had its license canceled in 2001 by President Olusegun Obasanjo, despite the influence of Dan Etete, the ex-Minister of Petroleum, who had allocated the lucrative OPL 245 block to Malabu. Mohammed Abacha, son of the former dictator, claims ownership of Malabu Oil & Gas.

The OPL 245 block was reinstated to Malabu through a 2006 settlement, and in 2011, President Goodluck Jonathan formalized the restoration. Shell and ENI acquired full rights to the block for $1.3 billion in a deal facilitated by the government. However, fraud allegations emerged from international watchdogs regarding the settlement, prompting criminal and civil lawsuits in Italy and the UK. All defendants, including the oil companies, were ultimately cleared of charges.

Under the Muhammadu Buhari Regime, the decision was made not to upgrade the prospecting license (OPL) to a full oil mining lease (OML) for the Etan and Zabazaba fields being worked on by ENI.

ENI's claim sought a court declaration that Gatti and Il Fatto SpA were responsible for defamation due to their publication, demanding a total of €5,000,000 in compensation or an alternative equitable sum, in addition to interest and adjustments. ENI also demanded that Gatti pay additional monetary damages.