The boss of a North Sea independent producer in the process of buying assets from Shell (LON:SHEL) and Exxon (NYSE:XOM) has hit back at claims he forged documents to steal millions from a previous employer.
Viaro Energy chief executive Francesco Mazzagatti said he and his finance director, who is also named in the suit, “categorically deny these fabricated claims” after it emerged the duo were the subject of a law suit filed London’s High Court in August.
Singapore-based company Alliance Petrochemical Investment (API) has accused Mazzagatti of being involved in the misappropriation of at least €143.8 million (£120m).
Mazzagatti, who was previously chief executive of API and his co-defendant, Francesco Dixit Dominus, Viaro’s finance chief, have denied the allegations and have claimed they are part of a “vexatious campaign and attack against him”.
Mazzagatti has pointed a finger at API director and “former trusted friend” Arshiya Jahanpour, who he has claimed was in control of the business when the allegations of wrong doing took place.
The Viaro CEO also denies claims made in the lawsuit he is “subject to any inquiry or scrutiny by authorities” as a result of any dealings with Mehr Petrochemical Company (MHPC), an Iran-based distributor associated with API which is subject to US sanctions.
The Financial Times reported that the lawsuit alleges Mazzagatti may have “used at least part of the misappropriated funds to acquire a majority share in RockRose Energy”.
Viaro became a significant North Sea player when it acquired assets of RockRose Energy in a £247 million deal in 2020.
Earlier this year, Viaro announced a deal with Shell UK and Exxon subsidiary Esso to take a 100% stake in 11 Shell-operated offshore assets through its RockRose Energy subsidiary.
Viaro did not disclose the value or financial nature of the agreement. But once it closes, it will operate the Shamrock, Caravel, Corvette, Brigantine, Leman, Galleon, Skiff, Carrack Main and East, Cutter, Barque and Clipper assets accounting for around 5% of total UK gas production.
The offshore assets all tie back to the onshore Bacton Gas Processing Terminal via the Leman and Clipper fields.
It also has ambitious plans to develop an “industry leading” nuclear power project – potentially on its site at Bacton.
The trouble brewing with API is not only legal dispute Viaro is involved with.
Abu Dhabi’s Taqa is also pursuing Viaro in London courts. It claims Rock Rose owes at least £110m needed to pay for its share of decommissioning costs for is shared North Sea asset, the Brae oilfield. Instead, the Viaro-owned firm declared an $84m dividend before selling it for $1 to Fujairah Oil and Gas, backed another emirate in the UAE.
Fujairah went on to default on its share of the huge cost of dismantling the oilfield – with those multimillion-pound costs falling to the Brae partners.
The defendants deny the claims in the Taqa lawsuit, which has yet to reach a judgment.
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