Latest news with #fraudclaims
Telegraph
3 days ago
- Business
- Telegraph
Miliband urged to investigate North Sea sale
Ed Miliband has been urged to closely scrutinise a planned deal to offload 5pc of Britain's North Sea gas production to an energy tycoon accused of fraud. Andrew Bowie, the shadow Scottish secretary, has called on the Government to review a $500m (£370m) agreement between Shell and Viaro Energy, a start-up run by Francesco Mazzagatti. The British oil giant announced the sale of 11 gas fields to Viaro last July, although the deal has been overshadowed by fraud claims against Mr Mazzagatti, including that he forged documents and misappropriated tens of millions of pounds. A string of large oil producers have sought to sell assets in the North Sea following a net zero crackdown on production, opening the door for relatively unknown companies to enter the industry. Mr Miliband has banned new licences for projects in the area, making it unattractive for major players. Viaro, which has said it will soon control the 'backbone of the UK's energy production and security', is still waiting for the deal to be signed off by the Government. Speaking to The Telegraph, the Tory MP warned of a vacuum appearing in the North Sea as Mr Miliband, the Energy Secretary, drives away established oil companies through higher taxes. 'Take the case of Shell,' he said. 'One of the world's most responsible and respected energy companies is now looking to offload its North Sea assets to Viaro Energy – a firm led by a man accused of fraud and misappropriation. 'These allegations put pressure on Ed Miliband to properly scrutinise this deal. How does it square with the Government's supposed hardening approach to its national security strategy?' Shell to continue with deal Mr Mazzagatti has been thrust into the spotlight ever since announcing the planned takeover of the gas fields, as he simultaneously fights claims of fraud and theft made by a Singaporean trading company that he previously worked for. According to court documents, Alliance Petrochemical Investment (API) alleges that Mr Mazzagatti extracted funds from the business to fund a deal for RockRose Energy in 2020, an oil and gas company previously listed in London. Mr Mazzagatti has repeatedly denied the allegations and claimed they are part of a 'vexatious campaign of defamation, harassment and extortion'. In a defence previously submitted to the High Court, he attacked the 'false' fraud claims and stressed that he was 'not responsible for any unlawful payments'. According to his defence, 'it is denied that Mr Mazzagatti misappropriated any sums from API' or that he 'made any false representations to the board of API'. His defence also claims that he 'was not responsible for overseeing or making payments and did not control API's affairs'. It comes after Mr Mazzagatti has rapidly expanded his North Sea operations in recent years. As well as acquiring RockRose, he also purchased SSE's portfolio of gas exploration and production assets for £120m in 2020. Viaro, which currently produces 250,000 barrels of oil a day, also announced a £7m deal for offshore operator Deltic Energy earlier this summer. Shell has stressed repeatedly that it is proceeding with the sale to Viaro regardless of the claims against Mr Mazzagatti, and said it hopes to complete the deal by the end of this year. A spokesman for the company previously said: 'The sale of Shell's offshore gas assets in the UK southern North Sea to Viaro Energy has received a number of regulatory approvals and is expected to complete this year. 'We have a well-established due diligence process and continue to work with all relevant regulators, including the North Sea Transition Authority.' The Telegraph revealed details of the extensive allegations against Mr Mazzagatti earlier this year. Court papers lodged by API in Singapore claimed that proof of fraud had been obtained by accessing Mr Mazzagatti's bank statements. 'The evidence of Mazzagatti's bank statements is damning and clearly shows direct misappropriation of funds from API by Mazzagatti,' they said. In his response to the claims regarding his bank statements, Mr Mazzagatti said it was a 'contrived and disingenuous' attempt to accuse him of wrongdoing. Calls to scrutinise Viaro's acquisition of the North Sea gas fields come amid a broader debate over the future of the North Sea, particularly after Labour banned all new drilling and raised taxes. It emerged earlier this week that Harbour Energy, Britain's biggest oil and gas producer, is shifting investment out of the UK and into other countries, including Norway, after windfall taxes left it with an 111pc tax rate.
Telegraph
13-06-2025
- Business
- Telegraph
Tycoon buying up North Sea fighting fresh fraud claims
An energy tycoon in talks to buy 5pc of Britain's North Sea gas production is facing new claims of fraud, The Telegraph can reveal. Francesco Mazzagatti has been accused of stealing £23.5m from his former employer to help fund a deal for a London-listed energy producer, according to recently submitted court documents. It is claimed that the oil trader extracted funds from Alliance Petrochemical Investment (API), a Singaporean trading company he previously worked for, to purchase RockRose Energy in 2020. The acquisition established Mr Mazzagatti as a key player in the UK energy market. He is now racing to expand his empire by acquiring 11 North Sea gas fields owned by Shell and ExxonMobil for £403m. Shell hopes to complete the deal by the end of this year, although it is still awaiting sign-off from the UK Government. The planned acquisition would hand Mr Mazzagatti control of 5pc of Britain's total gas production, making him critical to the country's long-term energy security. However, the transaction has been overshadowed by claims made against Mr Mazzagatti of fraud and theft. Theft accusations API is already fighting a High Court battle against Mr Mazzagatti in the UK and has launched separate proceedings in Singapore. Recently submitted court documents in the Singaporean case claim to show how Mr Mazzagatti syphoned funds to himself, allegations he denies. Ngoo Sin Hung Justin, an API director, has sworn an affidavit accusing Mr Mazzagatti of stealing at least £23.5m from API and its subsidiary APT. He is alleged to have done so via Petrochemical Industries Ltd (PIL), a company he controlled. In his affidavit, Mr Ngoo Justin alleges Mr Mazzagatti controlled APT's finances for his own benefit and made unexplained transactions to third-party entities. He said: 'Mazzagatti has deliberately withheld documents pertaining to APT, including the bank statements of all bank accounts held in its name, so as to conceal his misappropriation of funds from APT.' As part of its lawsuit, API claims to have obtained Mr Mazzagatti's bank statements. 'Mazzagatti's bank statements show that considerable sums were transferred from the accounts of API and APT to Petrochemical Industries and subsequently to Mazzagatti,' court papers said. 'The evidence of Mazzagatti's bank statements is damning and clearly shows direct misappropriation of funds from API by Mazzagatti through PIL.' Copies of Mr Mazzagatti's bank statements were included in the court filings in Singapore, allegedly showing the flow of funds from API to Mr Mazzagatti and onwards to other entities. The alleged transactions are set out in a range of currencies, underlining the global nature of the claimed fraud. For example, on Nov 19 2020, €15.5m (£13.2m) was allegedly transferred from API to Mr Mazzagatti before another €3.2m allegedly landed in his account a month later. In one transaction, Mr Mazzagatti allegedly transferred £2.9m of API's funds directly to RockRose Energy. Another alleged $6.3m transaction is also referenced. 'Contrived and disingenuous' In his response to the latest claims regarding his bank statements, Mr Mazzagatti said it was a 'contrived and disingenuous' attempt to accuse him of wrongdoing. The energy tycoon denies the allegations and claims they are part of a 'vexatious campaign of defamation, harassment and extortion'. He also denies deliberately failing to disclose relevant documents in the case to conceal his alleged wrongdoings. The latest allegations follow previous claims in the English High Court by API that Mr Mazzagatti faked bank statements, forged documents and misappropriated a total of €143m. The API lodged its UK claim last October, just three months after Shell announced the sale of its Southern North Sea assets to Viaro, Mr Mazzagatti's start-up energy company. In his reply to the affidavit filed in Singapore, Mr Mazzagatti strenuously denied any wrongdoing and said the issue of the misappropriated funds has 'not yet been determined by the UK court'. An earlier defence submitted to the High Court in England also attacked the 'false' fraud claims, as he stressed that he was 'not responsible for any unlawful payments'. According to his defence, 'it is denied that Mr Mazzagatti misappropriated any sums from API' or that he 'made any false representations to the board of API'. His defence also claims that he 'was not responsible for overseeing or making payments, and did not control API's affairs'. In the months after his takeover of RockRose, Mr Mazzagatti rapidly expanded his assets in the North Sea, notably purchasing SSE's portfolio of gas exploration and production assets for £120m. Shell is proceeding with its plans to sell 11 gas fields to Mr Mazzagatti's Viaro Energy despite the fraud allegations. Viaro said the deal would hand it control of 'the backbone of the UK's energy production and security'. A source close to Mr Mazzagatti has said the lawsuits will have no bearing on the North Sea deal with Shell. They also claimed that 'there is not a single piece of credible evidence' to support the claims. Joe Robertson, Conservative MP, urged the Energy Secretary to scrutinise the deal. He said: 'Ed Miliband should look very carefully at these proposed plans to offload 5pc of Britain's North Sea gas production to a man currently accused of fraud in the High Court.' Lawyers for Mr Mazzagatti pointed to a recent court ruling in the UAE where there was no finding against him regarding claims of embezzlement. An allegation of forgery was also dismissed. A Shell spokesman said: 'The sale of Shell's offshore gas assets in the UK Southern North Sea to Viaro Energy has received a number of regulatory approvals and is expected to complete this year. 'We have a well-established due diligence process and continue to work with all relevant regulators, including the North Sea Transition Authority.'
