* Former head of trading accused of fraud over crude
purchase
* Deal terms left Eni vulnerable to possibly buying Iranian
oil
* Eni trading CFO replaced, operations manager suspended
By Julia Payne and Emilio Parodi
LONDON/MILAN, July 18 (Reuters) - Eni ENI.MI has filed a
fraud complaint against its former head of oil trading over a
suspect Iraqi crude oil shipment, amid concerns inside the
Italian oil major that the failed delivery may have included
Iranian crude targeted by U.S. sanctions.
In the filing to the Milan prosecutor's office Eni accused
its former head of trading and operations, Alessandro Des
Dorides, of misleading all parties to the deal and hiding the
role of a small Italian oil trading firm, Napag.
Two other senior employees were either demoted or suspended
as a result of the failed shipment, sources familiar with the
matter said.
Eni said it had suspended dealings with Napag in February
over a separate investigation by Milan prosecutors into
suspected obstruction of justice by members of Eni's former
legal team. Eni said it fired Des Dorides at the end of May, after he
had been in his job about six months, for what it said was an
unrelated petrochemical deal with Napag in 2018.
Napag did not respond to an emailed request for comment or
answer phone calls.
Des Dorides did not respond to several requests for comment
from Reuters via email or LinkedIn. Reuters could not locate
legal representation for him.
Eni also declined to comment. Eni said it "does not comment
on ongoing investigations and internal due processes."
INTERNAL PANIC
The crude arrived aboard the White Moon tanker at the end of
May for offloading at the Milazzo refinery in Sicily, which is
part-owned by Eni. The Italian oil major, which produces oil in
Iraq and is a regular buyer of Iraqi crude, was solely
responsible for the cargo.
However, Eni said it rejected the delivery because it did
not match the Iraqi Basra Light crude it expected from its
counterparty, the Dubai-based trading arm of Nigerian firm
Oando.
After sitting offshore for three weeks, the White Moon
sailed back to the Gulf. The tanker manager did not respond to a
request for comment.
Two sources at Eni said the White Moon's 1 million barrel
cargo created panic within the company over fears the crude
could be, at least partially, Iranian.
Handling Iranian oil would have breached sanctions the
United States reimposed or extended last year after quitting a
nuclear deal between Iran and world powers.
Washington aims to reduce Iran's exports to zero and force
the Islamic Republic to renegotiate that nuclear deal, curb its
missile programme and modify its behaviour in the Middle East.
Iran has called on other parties to the accord to shield it
from the effects of U.S. sanctions and has sought to circumvent
U.S. restrictions by selling more of its oil undercover.
ENI ACTION
Following the rejection of the White Moon shipment in June,
the head of the Italian Senate Industry Committee wrote to Eni
Chief Executive Claudio Descalzi to clarify the origin of an oil
cargo labelled as coming from Iraq, the head of the committee
said.
The head of the committee declined to comment to Reuters on
the oil's possible origins.
Eni said it bought the crude from Nigerian firm Oando, who
in turn bought the oil from the London branch of Italy's Napag.
Oando said it took back the cargo from Eni but declined to
comment further on the origins of the cargo as it was "in the
middle of a resolution" over the rejected oil. Oando said the
terms of the deal were "normal for the trading industry."
Italian prosecutors cannot legally comment on any
investigation unless there is an exceptional circumstance.
Trading sources familiar with the deal said the offer terms
for the crude should have raised alarms internally even before
its arrival off Sicily. The offer was at a significant discount
to typical Iraqi trades, was paid for in euros and was from a
firm that is new to the region, they said. Physical oil is
commonly traded in dollars.
Eni said that the mismatch in the crude's chemical
composition "coupled with other red flags led to the decision to
terminate the transaction."
The oil loaded onto the White Moon came via two ship-to-ship
transfers that makes the origin harder to track, according to
sources with direct knowledge of the deal.
The crude bought from Oando was loaded onto the White Moon
from another vessel, the New Prosperity, but that vessel itself
had been loaded with oil from a third tanker, the Abyss, the
sources added.
The Abyss makes regular voyages through the Mideast Gulf
with its transponder switched off for days at a time, according
to Refinitiv Eikon ship tracking. The transponder was switched
off between April 24 and May 3 when it transferred oil to the
New Prosperity. For safety reasons, it is unusual for ships to
turn off their tracking systems.
In addition to the termination of Des Dorides, the CFO of
Eni trading, Mauro Cavagna, was removed from his post in late
June and replaced by head of compliance Francesco Metrangolo,
the company said. Cavagna is still employed at Eni.
Three sources familiar with the matter said Cavagna's
removal was related to the White Moon and that operations
manager, Francesca Delladio, was also suspended in relation to
the same matter.
Cavagna and Delladio referred Reuters's requests for comment
to Eni.