Shell appeals asset sale judgement in favour of Rivers State

Shell Petroleum Development Company said it would appeal the ruling of the Rivers State High Court, affirming the enforcement of the purported sale of interests in its joint venture’s assets in Kidney Island and specified interests in Oil Mining Lease (OML) 11 to the Rivers State government.

The oil supermajor expressed its disappointment in a statement titled, ‘Shell Appeals Asset Sale Judgement,’ in which its Media Relations Manager, Bamidele Odugbesan said the company ‘has therefore filed an appeal and an application for a stay of execution of this recent judgment issued by the Rivers State High Court on 13 August 2020.’

Shell avowed that before the case, the Rivers State Government had filed a related case at the Federal High Court, praying the court to order the Minister of Petroleum Resources to recognise the same purported interest acquired through auction sale.

The statement noted that the state government withdrew the Abuja case in July 2020 and refiled a fresh case at the Rivers State High Court without joining the Minister of Petroleum.

Read also: Shell gets 21 days to pay ‘$14m debt’ or have their facilities shut down

‘Curiously, an application by the SPDC to join the Minister of Petroleum Resources to the suit for a just determination of the issues with all necessary parties was denied by the judge who heard and determined the case within six weeks from when it was served on the SPDC in July 2020.

‘Under the Nigerian Petroleum Act, any acquisition or assignment of interests in a licence or lease must have the consent of the Minister of Petroleum Resources,’ it said.

It went further to say that the root case, Chief Agbara and Others v. SPDC, which resulted in the purported sale of interests of SPDC JV’s assets, is still the subject of litigation in several courts, including the Supreme Court.

‘It remains the position of the SPDC that no payment is due and any purported sale or enforcement of payment is premature and prejudicial to ongoing proceedings. The auction sale is also being challenged on appeal by the SPDC.’

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