The $2.4 billion divestment of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Holdings has sparked a legal dispute, as Global Gas & Refining Limited (GGRL) intensifies its efforts to challenge the transaction.
Global Gas has accused Shell and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) of violating a Federal High Court order, which had placed restrictions on any further action regarding the divestment.
Chairman of Global Gas, Kenneth Yellowe, criticized Shell’s decision to proceed with the deal, describing it as an outright disregard for judicial authority. Citing Suit No: FH/ABJ/CS/413/2024, Yellowe stated that the court order explicitly prohibited any action on the divestment until the case was fully resolved.
“This is a flagrant disregard for Nigeria’s judiciary, raising serious concerns about the enforceability of court orders when multinational corporations are involved,” he stated.
Regulatory Concerns
Global Gas also condemned NUPRC’s role in the transaction, alleging that the regulatory body ignored a pending motion for an injunction as well as a binding affidavit it had submitted to the court. The affidavit, according to Global Gas, obligated NUPRC to maintain the status quo until the case was resolved—a commitment the company claims was violated.
The legal battle threatens to erode investor confidence in Nigeria’s regulatory system. Global Gas argues that Shell’s divestment strategy benefits foreign players at the expense of indigenous firms and undermines accountability for unresolved grievances.
A 20-Year Dispute
The lawsuit is the latest chapter in a 20-year dispute between Global Gas and SPDC. According to Global Gas, Shell deliberately obstructed its $500 million investment in Nigeria’s energy sector, leading to protracted legal conflicts.
With the divestment now at the center of legal contention, the case could have far-reaching implications for Nigeria’s oil and gas sector, particularly in how local and international businesses navigate regulatory challenges.
Source: The Guardian
