Global Gas Condemns $2.4B Shell Divestment, Alleges NUPRC Defied Nigerian Court Order

The sale of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Holdings has sparked controversy, with Global Gas & Refining Limited (GGRL) raising concerns over the transaction and its implications for Nigeria’s judicial process.

In a statement, Global Gas Chairman, Mr. Kenneth Yellowe, criticized the March 13, 2025, announcement by Shell, describing it as concerning and potentially in conflict with ongoing legal proceedings.

He alleged that Shell proceeded with the sale despite a pending court case that had placed legal constraints on the transaction.

According to Global Gas, the sale may have violated an existing order from the Federal High Court in Suit No: FH/ABJ/CS/413/2024, in which the company had sued Shell and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) over the matter.

Beyond Shell, Global Gas also raised questions about the role of NUPRC, Nigeria’s upstream oil and gas regulator, in approving the divestment.

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The company expressed surprise that NUPRC, under the leadership of Commission Chief Executive (CCE) Engr. Gbenga Komolafe, sanctioned the sale despite a pending motion for injunction and a binding Affidavit of Undertaking filed in court.

Global Gas contends that this affidavit contained an explicit commitment that no steps would be taken regarding the divestment until the case was resolved. The company alleged that by proceeding with the sale, NUPRC may have acted in contradiction to its sworn undertaking before the court.

The company further warned that disregarding legal proceedings could undermine investor confidence and corporate governance in Nigeria.

Global Gas expressed concerns that if such transactions are allowed to proceed amid pending litigation, it could set a precedent that impacts both local and foreign investments in the country.

Additionally, Global Gas stated that it has been involved in a long-standing dispute with SPDC, during which its $500 million investment has allegedly been affected.

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The company insists that it remains in court seeking resolution and redress for its losses and is determined to challenge any actions that could impact the outcome of ongoing legal proceedings.

Vowing to pursue legal action, Global Gas announced plans to challenge the sale in court, urging relevant authorities to intervene. The company emphasized the importance of upholding judicial processes, cautioning that failure to do so could affect the credibility of Nigeria’s regulatory and legal systems.

Source: Legit.ng