Norwegians charged with corruption in oil deal revealed by Investigate Europe
Norwegian authorities have charged individuals and a subsidiary of oil giant Petronor over dealings in Congo-Brazzaville.
Two Norwegian nationals and a subsidiary of energy giant Petronor have been charged with "gross corruption" over an oil deal in Congo-Brazzaville, the Scandinavian country’s anti‑corruption police announced this week. The charges came almost three years after an Investigate Europe investigation documented the alleged corruption that is now at the centre of a transnational probe.
Our 2023 investigation revealed how Hemla, a subsidiary of Oslo-listed Petronor, and two businessmen granted secret shares to family members of President Denis Sassou-Nguesso in a group of oil fields in the Central African nation. The bloc is majority-owned and operated by the Franco-British oil company Perenco.
Perenco and Hemla obtained 40 per cent and 20 per cent respectively of a lucrative permit in 2016 to exploit the offshore PNGF Sud oil bloc. Investigate Europe detailed how Hemla discreetly handed a quarter of its own stake to a Congolese entity controlled by the president's family.
Norway’s anti-corruption authority, Økokrim, now alleges that the arrangement was a bribe, enabling Sassou-Nguesso to amass significant profits from Hemla's stake in the licence.
“Up to 2024, this has provided a benefit of at least $24.68 million to the President via his close family members," prosecutors wrote in the indictment against Knut Søvold and Gerhard Ludvigsen and the company they founded, Hemla.
The case originated when a suspicious transaction was flagged at a bank in Monaco, after which local authorities engaged their counterparts in Norway. Økokrim said in a press release that the investigation also involved assistance from French and US law enforcement agencies.
"The indictment is an illustration of what may be described as ‘grand corruption’. This entails the use of bribes directed to the top public officials of a country, and often implies bribes of huge monetary value," Økokrim said.
Investigate Europe previously revealed how MGI International, the Congolese entity involved in the deal, was controlled by Sassou-Nguesso's family members, including his daughter and son-in-law, as well as a prominent politician. At the time, leaked emails showed how they lobbied the government in late 2016 so that Hemla would win its bid for the PNGF Sud permit.
Petronor declined to comment on Investigate Europe’s 2023 investigation, while lawyers for the Norwegian pair denied any wrongdoing.
Our 2023 investigation revealed how Hemla, a subsidiary of Oslo-listed Petronor, and two businessmen granted secret shares to family members of President Denis Sassou-Nguesso in a group of oil fields in the Central African nation. The bloc is majority-owned and operated by the Franco-British oil company Perenco.
Perenco and Hemla obtained 40 per cent and 20 per cent respectively of a lucrative permit in 2016 to exploit the offshore PNGF Sud oil bloc. Investigate Europe detailed how Hemla discreetly handed a quarter of its own stake to a Congolese entity controlled by the president's family.
Norway’s anti-corruption authority, Økokrim, now alleges that the arrangement was a bribe, enabling Sassou-Nguesso to amass significant profits from Hemla's stake in the licence.
“Up to 2024, this has provided a benefit of at least $24.68 million to the President via his close family members," prosecutors wrote in the indictment against Knut Søvold and Gerhard Ludvigsen and the company they founded, Hemla.
The case originated when a suspicious transaction was flagged at a bank in Monaco, after which local authorities engaged their counterparts in Norway. Økokrim said in a press release that the investigation also involved assistance from French and US law enforcement agencies.
"The indictment is an illustration of what may be described as ‘grand corruption’. This entails the use of bribes directed to the top public officials of a country, and often implies bribes of huge monetary value," Økokrim said.
Investigate Europe previously revealed how MGI International, the Congolese entity involved in the deal, was controlled by Sassou-Nguesso's family members, including his daughter and son-in-law, as well as a prominent politician. At the time, leaked emails showed how they lobbied the government in late 2016 so that Hemla would win its bid for the PNGF Sud permit.
Petronor declined to comment on Investigate Europe’s 2023 investigation, while lawyers for the Norwegian pair denied any wrongdoing.
A breakdown of the various shareholders in the PNGF Sud oil field.
The Republic of the Congo, often known as Congo-Brazzaville, ranks among the world’s most corrupt states, with around half its 6 million people living in extreme poverty. Sassou-Nguesso, who first took power after a succession of coups, has led the country since 1979 with only brief interruptions. His authoritarian rule has been marked by years of civil war and corruption scandals.
In a public statement issued this week, Petronor said it categorically contests the indictment of Hemla and “welcomes the opportunity to have the case thoroughly examined in court."
Søvold and Ludvigsen have denied any wrongdoing. "All agreements with the Congolese company are made on commercial terms and purely commercial considerations, and have nothing to do with corruption," lawyers for the pair said in a statement reported by Reuters.
While Perenco was not named in the Norwegian indictment, French newspaper Challenges has previously reported that the company has been under investigation in France in relation to the PNGF Sud fields. At the time of Investigate Europe’s 2023 investigation, a spokesperson for the company said: “There are no failures of compliance with regard to Perenco’s activities on the PNGF Sud permit.”
Investigate Europe’s revelations concerning the Congo oil fields are part of our broader investigation into Perenco, a company established in the 1990s which today calls itself “Europe’s leading independent oil and gas group”. The investigation has exposed pollution incidents tied to the company in Gabon and the Democratic Republic of Congo, revealed conflict of interest concerns with a French minister, and mapped the firm’s multibillion-euro wealth in tax havens and European real estate.
In a public statement issued this week, Petronor said it categorically contests the indictment of Hemla and “welcomes the opportunity to have the case thoroughly examined in court."
Søvold and Ludvigsen have denied any wrongdoing. "All agreements with the Congolese company are made on commercial terms and purely commercial considerations, and have nothing to do with corruption," lawyers for the pair said in a statement reported by Reuters.
While Perenco was not named in the Norwegian indictment, French newspaper Challenges has previously reported that the company has been under investigation in France in relation to the PNGF Sud fields. At the time of Investigate Europe’s 2023 investigation, a spokesperson for the company said: “There are no failures of compliance with regard to Perenco’s activities on the PNGF Sud permit.”
Investigate Europe’s revelations concerning the Congo oil fields are part of our broader investigation into Perenco, a company established in the 1990s which today calls itself “Europe’s leading independent oil and gas group”. The investigation has exposed pollution incidents tied to the company in Gabon and the Democratic Republic of Congo, revealed conflict of interest concerns with a French minister, and mapped the firm’s multibillion-euro wealth in tax havens and European real estate.
