Italian prosecutors on Tuesday dropped criminal proceedings over a $1.3 billion Nigerian oilfield deal, clearing energy majors Eni and Shell, as well as managers, including Eni Chief Executive Claudio Descalzi.
Attorney General Celestina Gravina signaled the prosecution did not plan to pursue the case at the start of an appeal hearing into one of the oil industry's biggest ever corruption cases.
"This case must finish today because it has no basis, in fact it should have finished earlier," Gravina told the court.
The Appeal Court formally took note of the decision, meaning the criminal case will be closed and the acquittal of all defendants will become final. The appeal will now only concern civil proceedings, as Nigeria has sued for compensation.
Eni said it was very satisfied that the case had been concluded, describing it as "unmotivated and disconcerting."
While the General Prosecutor's Office at the Appeals Court sometimes asks for the acquittal of defendants at the end of an appeal process, legal and judicial sources told Reuters that the decision to withdraw at the start of a trial is unprecedented in Milan.
The Tribunal Prosecutor's Office, which is a separate body, and the Nigerian government had sought to appeal a March 2021 ruling which had acquitted the two companies and defendants after a three-year trial.
Lucio Lucia, a lawyer representing the Nigerian government, said the decision not to proceed was unusual.
He argued that the lower court had failed to properly assess the documentary proof against the defendants.
The main case revolved around a deal in which Eni and Shell acquired the OPL 245 offshore oilfield in 2011 to settle a long-standing dispute over ownership.
Prosecutors alleged that just under $1.1 billion of the total amount was siphoned off to politicians and middlemen.
The First Instance Court in Milan said in March 2021 there was no case to answer and acquitted the companies and all other defendants.
The next hearings for the civil case are scheduled for September.
(Reuters - Reporting by Emilio Parodi and Alfredo Faieta; Writing by Keith Weir; Editing by Susan Fenton)