Legal Challenge Filed Against Shell’s Transfer of Mining Licence to Renaissance African Energy Company
A legal battle has erupted over Shell Petroleum Development Company Limited’s transfer of its mining license to Renaissance African Energy Company Limited, with a suit filed at the Federal High Court in Lagos. The Incorporated Trustees of Human Environmental Development Agenda has taken legal action against Shell, Renaissance, and several government entities over the controversial deal.
The suit, filed by Kunle Adegoke on behalf of the plaintiff, raises concerns about the alleged non-compliance with Nigeria’s legal and regulatory frameworks governing the petroleum industry. The group alleges that Shell’s sale of onshore assets to Renaissance violated several Nigerian laws, including the Petroleum Industry Act 2021.
Key issues highlighted by the plaintiff include concerns about the legality, transparency, and regulatory compliance of the transaction. The organization argues that the failure to adhere to legal requirements, such as conducting and disclosing an Environmental Evaluation Study, could set a dangerous precedent and undermine national and public interests, particularly regarding environmental sustainability and community welfare in the Niger Delta.
HEDA is seeking the court to declare the transfer of the oil exploration license invalid and unlawful, citing various regulations and guidelines that were allegedly not followed by the defendants. The company’s spokesperson was unavailable for comment at the time of reporting.
In March, Shell announced the completion of the sale of SPDC to Renaissance, as part of its strategy to simplify its presence in Nigeria by focusing on deepwater and integrated gas investments. Renaissance now holds a 30% stake in the SPDC Joint Venture, alongside other partners.
The legal battle over the controversial deal between Shell and Renaissance is set to unfold in the coming days, with implications for the future of oil exploration and production in Nigeria. Stay tuned for updates on this developing story.
