SPDC HALTS DIVESTMENT PLAN OVER N800 BILLION JUDGMENT
By T.A.M Damiari Esq
The recent order of the Supreme Court of Nigeria made on June 16, 2022 for parties to maintain ‘status quo’ in a pending appeal over N800 billion judgment obtained by Isaac Torchi and 87 members of the Ejalawa community, Rivers state, against Shell Petroleum Development Company of Nigeria Ltd (SPDC), would further delay the divestment plan of the company’s onshore oil and gas assets.
In response to the order of the apex Court, Royal Dutch Shell Plc now Shell Plc stated that it would halt all plans towards the divestment of its interest in the venture until the outcome of the appeal, in deference to the apex Court’s ruling and the rule of law.
Shell was in the process of concluding plans for the divestment of its onshore assets in SPDC to two Nigerian companies, Heirs Oil and Gas Ltd. and ND Western Ltd., who were meant to send final offers to Shell, prior the Supreme Court order.
The order of the apex Court is coming at the heels of a recent ruling of the apex Court in the case of SC/731/2017 – SPDC & 2 Ors. v Chief Isaac Osaro Ogbara & Ors, where the Court directed SPDC to pay the sum of N46 billion awarded against. This is in addition to the emerging global trends of transnational litigations from Europe and the UK against Shell for oil pollution in Niger Delta. Despite SPDC claims of sabotage, host communities, victims and stakeholders, have continuously blamed SPDC and its parent company for the years of neglect and environmental degradation in the Niger Delta region.
It is expected that the case would finally settle all lingering issues of rights and liabilities of the respective parties and set the pace for the possible conclusion of sale of SPDC onshore oil and gas assets to indigenous companies. It is also hoped that more indigenous companies’ participation in the oil industry would further increase domestic production, foreign direct investment, training, employment, and provide the needed panacea for de facto control of the oil industry by indigenous companies.
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