Shell Dismisses Rivers State Purported Takeover Of Kidney Island Assets

Posted by Tolulope Ogugua African News, Business News, Featured, Latest Headlines Wednesday, December 23rd, 2020

(AFRICAN EXAMINER) – The Shell Petroleum Development Company of Nigeria Limited (SPDC) has dismissed the purported takeover of Kidney Island asset of the SPDC Joint Venture in Port Harcourt by the Rivers State Government in the exercise of rights purportedly acquired through a court auction process that is still the subject of ongoing appeals at the Court of Appeal sitting in Port Harcourt.

According to SPDC, any purported exercise of rights allegedly acquired through that process including any attempt to take over or seal up the Kidney Island asset or other assets of the SPDC JV to satisfy claims in pending suits is premature and prejudicial to the ongoing court proceedings, and therefore not recognised.

Under the Nigerian Petroleum Act, any acquisition or assignment of interests in a licence or lease would require the consent of the Minister of Petroleum. No such consent has been given in the case of the purported acquisition by the Rivers State Government.

In addition, the ruling of the Supreme Court on 27 November 2020 did not decide liability or the size of the award in the underlying suit of Chief Ogbara & Others Vs SPDC neither did the ruling affirm the purported sale of SPDC JV’s assets to the Rivers State Government as being claimed by the state.

Meanwhile, there is a pending litigation by SPDC in which the Federal High Court has issued an interim order restraining further enforcement of the underlying Agbara judgment pending the hearing of the motion on notice fixed for hearing on 14 January 2021.

SPDC therefore calls on the Rivers State Government and those claiming interest in the SPDC Kidney Island asset to stay further action to allow the due process of the law as enshrined in the Nigerian Constitution.

We remain of the view that until the pending appeals are heard and determined, any exercise of rights including any attempt to take over or seal up SPDC JV’s assets by the Rivers State Government is premature and unlawful.