By Abubakar Yunusa
The sale of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Holdings has ignited a storm of controversy, with Global Gas & Refining Limited (GGRL) condemning the transaction as a brazen disregard for Nigeria’s judicial system.
Global Gas Chairman, Kenneth Yellowe,in a statement on Tuesday,described Shell’s 13 March announcement of the divestment as “unacceptable and condemnable”, accusing the oil giant of ignoring a pending court case that legally constrained the sale.
The company argues that the transaction violates an order from the Federal High Court in Suit No: FH/ABJ/CS/413/2024, where Global Gas had sued Shell and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the matter.
Beyond Shell, Global Gas has also questioned the role of the NUPRC, Nigeria’s upstream oil and gas regulator, in approving what it calls a “controversial” sale.
The company expressed shock that under the leadership of Commission Chief Executive (CCE) Gbenga Komolafe, NUPRC sanctioned the transaction despite a pending motion for an injunction and a binding Affidavit of Undertaking filed in court.
According to Global Gas, this affidavit explicitly prohibited the regulator from approving or facilitating any action affecting the lawsuit’s subject until the case was resolved.
“By proceeding with the sale, NUPRC has acted in bad faith, wilfully ignoring its own sworn undertaking before the court,” the company said in its statement.
The dispute raises concerns over corporate governance and the rule of law in Nigeria. Global Gas has accused Shell of treating the country’s legal system with contempt, warning that such actions could undermine investor confidence in Nigeria’s judiciary and regulatory processes.
The company also argued that while the divestment may appear to favour a foreign investor, it represents a severe injustice to an indigenous firm.
Global Gas claims it has been embroiled in a 20-year dispute with SPDC, during which its $500 million investment was allegedly obstructed by Shell.
The company insists that ongoing legal proceedings seek settlement and redress for its losses, making the sale of SPDC an unacceptable circumvention of justice.
Vowing to challenge the transaction in court, Global Gas has threatened immediate legal action against both NUPRC and SPDC. Mr Yellowe stressed that Shell’s disregard for Nigeria’s judiciary would not go unchallenged, calling on authorities to intervene to prevent long-term damage to the country’s legal and regulatory credibility.
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