Emmanuel Addeh in Abuja

Global Gas and Refining Limited has kicked against the consummation of the Sale and Purchase Agreement (SPA) between Shell Petroleum Development Company (SPDC) and the Renaissance consortium, describing it as unacceptable.

In a statement in Abuja, Chairman of Global Gas, Mr. Kenneth Yellowe, said the action was an affront on the Nigerian judiciary as well as a blatant disregard for the rule of law in the country.

Earlier, while the negotiation for the sale of the oil assets was on, Global Gas and Refining Limited had opposed the $2.4 billion deal, disclosing that despite pending cases against the oil multinational, it went ahead with the deal.

It stated that despite pledging to hold action during the pendency of the case, the oil giant was granted ministerial approval for the divestment of Shell Petroleum Development Company (SPDC), describing the development as unwelcome.

The Chairman of Global Gas and Refining Limited, Mr. Kenneth Yellowe, argued that while the acquisition of sizeable assets by an indigenous company should normally be a reason for great rejoicing and national pride, blatantly undermining a court injunction was not.

The federal government had initially rejected Shell’s plan to sell its onshore oil assets to the group of five companies known as Renaissance, citing among others, several court cases connected to the matter. It however, made a U-turn months later to approve of the deal.

Tracing the genesis of the dispute, Yellowe said Global Gas had a long-standing contractual arrangement with Shell, dating back to 1998 in respect of which it made substantial investments in a natural-rich gas processing facility.

He said the facility was specifically built for supplies from the Cawthorne Channel Oil and Gas fields of OML 18, costing approximately $0.5 billion.

Shell, the company said, started supplying rich gas to the plant in 2005, noting that after a while, the supplies dwindled, became sporadic and intermittent, leading to Global Gas shutting down its operations.

In the statement yesterday, the company stated: “Global Gas is unpleasantly surprised by the Shell announcement on March 13, 2025 regarding the completion of the sale of SPDC to Renaissance Africa Energy Holdings.

“This brazen act is not only condemnable and unacceptable but also a flagrant affront to the Nigerian judiciary, demonstrating Shell’s well-known blatant disregard for the rule of law and the integrity of the country’s legal system.

“This announcement is in clear violation of an order of the Federal High Court of Nigeria in Suit No: FH/ABJ/CS/413/2024, between Global Gas & Refining Limited (GGRL) vs the Shell Petroleum Development Company Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which the parties are aware of.

“Global Gas is unable to comprehend how the NUPRC has completed and approved this process, notwithstanding an affidavit of undertaking as to injunction in respective (sic) of the applicant/applicant’s motion on notice dated and Filed 2/9/2024, filed with the CCE’s full knowledge and consent, which clearly states:

“That the 2nd Respondent hereby undertakes not to take any step, make any decision, or take any action that may likely interfere with or affect the subject matter of the suit, pending the hearing and determination of this Suit.

“That the 2nd Respondent has the utmost respect for this Honourable Court and the judicial process and undertakes not to do anything to undermine the subject matter of the suit pending the hearing and determination of the same by this Honourable Court.

“That the 2nd Respondent knows as a fact that when there is a Motion for injunction, it is obligated in deference to the Court, not to take any steps until the application is heard and determined by the Court one way or the other.

“This defiance not only undermines the rule of law but also sets a dangerous precedent for corporate governance in Nigeria. Global Gas notes that the announcements so far made have been by Shell Global and other private entities, and not by NUPRC,” the statement added.

As the institution entrusted with the regulation of the entire Nigerian upstream, it stated that the NUPRC should know better than to complete the process of divestment, thereby acting with impunity and total disregard for the rules of law, and undermining the judicial processes of the Federal Republic of Nigeria.

Global Gas said it remains deeply concerned about the reputation of Nigeria, and the erosion of investor confidence in the judicial and regulatory processes in Nigeria.

“Whilst this illegality might be seen as being in favour of the foreign investor, it is a blatant and painful disservice to an indigenous company investor that has had $500 million trapped in a venture that was intentionally frustrated by SPDC, for nearly 20 years, and that is currently in court seeking settlement and redress.

“As a law-abiding company, Global Gas will not hesitate to take immediate legal action against NUPRC and SPDC. This reckless disregard for the Nigerian judiciary, and for justice delivery in Nigeria will not stand unchallenged,” Yellowe added.

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