The contentious $2.4 billion divestment of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Holdings has taken a new turn, as Global Gas & Refining Limited (GGRL) intensifies its legal battle over the development.
Condemning the divestment, the company accused Shell and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) of flouting a Federal High Court order.
The escalating dispute not only threatens the high-profile transaction but also exposes deeper systemic issues in Nigeria’s judicial and regulatory landscape even as some local and global bodies are kicking against the transaction.
Global Gas Chairman, Kenneth Yellowe, in a statement, frowned at Shell’s announcement of the divestment, describing it as defiance of judicial authority, specifically citing Suit No: FH/ABJ/CS/413/2024.
The case, filed by Global Gas against Shell and NUPRC, includes an existing court order that, according to the order made available to the media, prohibits any action on the divestment until the litigation is closed.
Yellowe argued that Shell’s move represents a “flagrant disregard” for Nigeria’s judiciary, raising critical questions about the enforceability of court directives in the face of multinational corporate interests.
The company also decried the role of the upstream oil and gas regulator headed by Chief Executive Gbenga Komolafe. Global Gas alleges that NUPRC’s alleged approval of the sale violates both a pending motion for injunction and a binding affidavit of undertaking submitted to the court.
The affidavit reportedly committed NUPRC to preserving the status quo pending the case’s resolution – an obligation the company claims was discarded. Global Gas insisted that Shell’s conduct risks eroding investor confidence by signalling that court orders can be ignored with impunity.
The company noted that the divestment favours foreign players at the expense of indigenous firms. The legal dispute is being fuelled by a 20-year feud between Global Gas and SPDC, during which the former claims its $500 million investment was frustrated by Shell’s alleged acts of deliberate obstruction. The divestment, Global Gas argues, is an attempt by Shell to undermine accountability for past grievances while the matter remains sub judice. (Guardian)
