Global Gas and Refining Limited has risen against the recent completion of the $2.4 billion Sale and Purchase Agreement (SPA) between Shell and Renaissance Consortium, despite pending cases against the oil multinational.
A few days ago, Renaissance Africa Energy Company Limited had announced that the Minister of Petroleum Resources had granted his consent to the sale of SPDC to the group.
In a press briefing in Abuja, the company 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.
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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 the deal last week.
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.
According to him, 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.
“There is irrefutable evidence and proof to show that Shell deliberately decided to prioritise the international market over domestic gas supply obligations, and to not honour the legal existing obligations between Shell and Global Gas, thereby frustrating this business relationship, and leading to substantial losses by Global.
“Specifically, Shell’s refusal to declare the main gas start date under the terms of the gas processing agreement, which would have triggered its contractual responsibilities, was a calculated act of bad faith and internal documentation from Shell unequivocally reveals this intentional ploy to undermine this agreement, causing significant losses to Global Gas and its partners, jeopardising its operations,” the company said.
In the course of protracted legal wrangling, Global said it learnt about the impending divestment, and immediately approached the court for protection by filing a motion seeking an injunctive order to restrain the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from granting the needed ministerial approval.
It said the court directed that the parties should meet to explore amicable settlement options, explaining that Global Gas had been complying with the court’s instruction.
Flaunting court documents to buttress his position, Yellowe said the company was at a loss for words that the upstream regulator, even after swearing to an affidavit, undertaking as to injunction in respect of the appellant/applicant’s motion on notice dated and filed September 2, 2024, has inexplicably granted consent, in violation of the court order.
“This defiance not only undermines the rule of law but also sets a dangerous precedent for corporate governance in Nigeria. The sudden and unlawful approval of this divestment during ongoing negotiations is an affront to justice and fairness,” Global Gas stressed.
Global Gas called on the Nigerian government, regulatory authorities, and international stakeholders to hold Shell accountable for its actions, insisting that the situation underscores the urgent need for stricter enforcement of court rulings and greater oversight of multinational corporations operating in Nigeria.
“Global Gas remains committed to pursuing all legal avenues to protect its rights and investments. It also stands in solidarity with other entities and communities affected by Shell’s actions.
“This is a fight for justice, fairness, and the rule of law. Shell’s impunity must not be allowed to stand. We urge all stakeholders to join us in demanding accountability and fairness for the Nigerian people,” the company stated.
It maintained that Shell’s sale of its assets cannot be at the expense of the many communities and commercial entities, such as Global Gas, that still have lingering and unresolved issues with SPDC.
“This approval marks a significant step forward from the announcement of the Sale and Purchase Agreements in January 2024,” a brief statement from the consortium stated.
