Former FTSE 250 oil chiefs banned from running companies

They failed to declare personal interests in a number of high-value transactions

The Big Zero report

Two former FTSE 250 oil bosses have been banned form running companies for 14 years each.

The Insolvency Service said Osman Shahenshah, 56, the former Chief Executive of oil and gas firm Afren and Shahid Ullah, 59, the former Chief Operating Officer, failed to declare personal interests in a number of high-value transactions.

In one deal, Afren paid $300 million (£210m) to a joint venture partner that resulted in a 15% fee payable through an ‘Oilfield Development Optimisation Services Agreement’ with a British Virgin Islands company controlled by the two directors and their families.

However, neither the agreement nor the $45 million (£31.5m) fee had been disclosed to the company’s board.

Mr Shahenshah received $9.2 million (£6.4m) and Mr Ullah received $7.9m (£5.5m), while $8.2 million (£5.7m) was paid to other Afren Group senior employees.

In another transaction worth $170 million (£119m) with a different joint venture partner, the two directors failed to declare to the board their interest as they were also negotiating a potential 30% ownership of the company after a management buyout.

Latest Podcast