The FCA is circling. Whitehall sources confirm a formal investigation into Shell's handling of oil spills in the Niger Delta. The probe, led by the Serious Fraud Office, will examine whether the company misled investors over environmental liabilities. This is a direct shot across the bow of Big Oil.
Leaked documents obtained by campaigners show Shell's own surveys detected massive contamination around Bodo and Ogoniland. Internal memos warned of 'irreversible damage' to mangroves and fisheries. Yet public statements downplayed the scale. The gap between what Shell knew and what it told the market could be the key issue.
Westminster is watching closely. Labour MPs are demanding a full parliamentary inquiry. 'This is on the scale of a national scandal,' one frontbencher told me. The Department for Business has been quietly gathering intelligence for months. The timing is brutal for Shell, which is already fighting a shareholder revolt over climate strategy.
For the Green lobby, this is a watershed. 'We have the paper trail,' said a campaign lawyer. 'The FCA must now decide if laws were broken.' The Nigerian government has so far stayed silent. But sources in Abuja say they are coordinating with London.
The investigation is at an early stage. But the message is clear: no company is above scrutiny. Shell shares dipped 2% on the news. The City is nervous. This could get very ugly.
Backbench Tories are split. Some see a witch-hunt against a vital British company. Others want to burnish green credentials ahead of the next election. Number 10 is staying out of it. For now.
I will have more details as this develops. The FCA statement is expected tomorrow morning.
