Viaro Energy CEO Faces Forgery Allegations in High-Stakes UK Lawsuit
Haneen Abbas
What do a high-stakes acquisition and a courtroom drama have in common? For Viaro Energy’s CEO Francesco Mazzagatti, the answer is painfully clear: both are unfolding simultaneously, and neither is lacking in intrigue. While the British oil producer gears up for a significant acquisition of North Sea assets from Shell and ExxonMobil, its CEO has been hit with explosive allegations that could reshape more than just corporate portfolios.
Trouble in the North Sea
Singapore-based Alliance Petrochemical Investment has filed a lawsuit accusing Mazzagatti of masterminding a forgery scheme to misappropriate a jaw-dropping €143.8 million. The allegations, which landed in London’s High Court this August, also rope in Viaro’s finance chief, Francesco Dixit Dominus. Alliance claims that part of the allegedly misappropriated funds were channeled into acquiring RockRose Energy—a company that has since become a jewel in Viaro’s North Sea crown.
But don’t count Mazzagatti out just yet. He and Dominus have denied the allegations, dismissing them as “fabricated” in their written defense. A Viaro spokesperson doubled down, promising a “substantial counterclaim” and painting the lawsuit as an elaborate charade. “Demolishing these allegations” is the game plan, they say. But will the courts buy it?
A Legacy Under Threat
This isn’t just a PR hiccup; it’s a potential wrecking ball aimed at the foundations of Viaro’s carefully constructed image. In July, Viaro proudly announced its intentions to acquire Shell and ExxonMobil’s Southern North Sea assets, an acquisition that would solidify its dominance in one of the UK Continental Shelf’s oldest and most lucrative gas portfolios. This move follows Viaro’s high-profile purchase of RockRose Energy in 2020, not to mention its growing influence across more than 30 oil and gas fields in the British and Dutch North Sea.
But with accusations of financial misconduct hanging overhead, the question arises: can Viaro seal the deal without regulatory eyebrows rising higher than oil prices during a supply crunch?
Corporate Chess or House of Cards?
Alliance Petrochemical’s lawsuit alleges that Mazzagatti’s tenure at their helm was less about leadership and more about leveraging. They claim to have “credible evidence” linking him to misappropriated funds, some of which were allegedly used to bankroll RockRose Energy’s acquisition.
For their part, Mazzagatti and Dominus argue that the claims are not just false but redundant, pointing to ongoing litigation in England and Italy covering similar territory. Whether this is a strategic pivot or a legal juggling act is anyone’s guess.
A Test Case for Corporate Governance
Beyond the courtroom drama, this case has all the hallmarks of a corporate ethics thriller. If the allegations stick, the implications stretch far beyond Viaro. Regulatory bodies could be compelled to tighten their scrutiny of corporate acquisitions, especially in industries as strategically significant as energy. For now, though, it’s a matter of “innocent until proven guilty”—a mantra that will be tested against Alliance’s stack of evidence.
What’s Next for Viaro?
For Viaro, the stakes couldn’t be higher. This isn’t just about reputations; it’s about survival in a sector where trust and transparency are worth their weight in crude oil. As Mazzagatti prepares his counterclaim, the company’s acquisition plans hang in the balance, and the industry watches with bated breath.
Can Viaro weather the storm, or will these allegations sink its ambitions? One thing is certain: this saga is far from over, and the North Sea isn’t the only arena where turbulence awaits.