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Shell And Renaissance Face Legal Action Over SPDC License Transfer

gisthub Apr 02, 2025
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The Incorporated Trustees of Human Environmental Development Agenda have filed a lawsuit at the Federal High Court in Lagos to stop Shell Petroleum Development Company Limited from transferring its mining license to Renaissance African Energy Company Limited.

The suit names Shell, Renaissance African Energy, the Federal Republic of Nigeria, and several other entities as defendants. Among them are the Attorney-General and Minister of Justice, Lateef Fagbemi, the Nigerian National Petroleum Company Limited, the Nigeria Upstream Petroleum Regulatory Commission, and the Ministry of Petroleum Resources.

Renaissance Africa Energy Holdings, a consortium made up of ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, the Waltersmith Group, and Petrolin, recently completed the acquisition of Shell’s equity stake in SPDC.

The lawsuit, filed by Kunle Adegoke on behalf of the plaintiff, raises concerns over alleged non-compliance with Nigeria’s legal and regulatory frameworks governing the petroleum industry.

In suit number FHC/L/CS/651/2025, HEDA argues that Shell’s sale of its onshore assets to Renaissance violates several Nigerian laws, including the Petroleum Industry Act of 2021.

The group highlights key issues related to the legality, transparency, and regulatory compliance of the transaction.

HEDA argued that allowing the transaction to proceed without adhering to legal requirements could set a dangerous precedent, undermining national and public interest, particularly in terms of environmental sustainability and the welfare of Niger Delta communities.

The organisation urged the court to declare that Shell’s transfer of its oil exploration license to Renaissance is invalid and unlawful, citing multiple sections of the Petroleum Industry Act (PIA) and various regulations governing oil and gas asset transfers, environmental protection, and emissions control.

HEDA also contended that the government’s approval of the transaction was unlawful, null, and void due to non-compliance with these legal provisions.

Shell had announced in January 2024 that it was selling its onshore subsidiary, SPDC, to Renaissance, and confirmed the completion of the sale in March. The company’s spokesperson was unavailable for comment at the time of reporting.

Shell stated that the divestment of SPDC aligns with its strategy to streamline its operations in Nigeria by exiting onshore oil production in the Niger Delta. The company emphasized its commitment to focusing on disciplined investment in deepwater exploration and integrated gas projects in the country.

With the acquisition, Renaissance now holds SPDC’s 30% stake in the SPDC Joint Venture, which also includes the Nigerian National Petroleum Company Limited, Total Exploration and Production Nigeria Ltd (10%), and Agip Energy and Natural Resources Limited (5%).

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