Global Gas and Refining Limited on Monday opposed the recent completion of the $2.4 billion Sale and Purchase Agreement between Shell and the Renaissance Consortium, revealing that the deal was finalized despite ongoing legal cases against the oil giant.
In a press briefing in Abuja, the company stated that despite promising to hold off on action during the ongoing case, the oil giant was granted ministerial approval for the divestment of Shell Petroleum Development Company, describing the development as unwelcome.
Chairman of Global Gas and Refining Limited, Mr. Kenneth Yellowe, argued that while the acquisition of significant assets by an indigenous company should typically be a cause for celebration and national pride, blatantly disregarding a court injunction was not.
The federal government initially rejected Shell’s plan to sell its onshore oil assets to the group of five companies known as Renaissance, citing, among other reasons, several ongoing court cases. However, it reversed its decision months later and approved the deal last week.
Yellowe stated that Global Gas had a long-standing contractual arrangement with Shell, dating back to 1998, under which it made substantial investments.
He noted that the facility was specifically built to supply resources from the Cawthorne Channel Oil and Gas fields of OML 18, at a cost of approximately $0.5 billion.
The company stated that Shell began supplying rich gas to the plant in 2005, but over time, the supplies dwindled, becoming sporadic and intermittent, which ultimately led 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 stated.
During the prolonged legal battle, Global Gas said it learned about the impending divestment and immediately sought court protection by filing a motion for an injunction to prevent the Nigerian Upstream Petroleum Regulatory Commission from granting the required ministerial approval.
The company stated that the court directed the parties to meet and explore amicable settlement options, emphasizing that Global Gas had been adhering to the court’s instructions.
Flaunting court documents to support his position, Yellowe expressed the company’s disbelief that the upstream regulator, despite swearing an affidavit and providing an undertaking regarding the injunction in relation to the appellant/applicant’s motion filed on September 2, 2024, had inexplicably granted consent, in direct 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 noted.
Global Gas urged the Nigerian government, regulatory authorities, and international stakeholders to hold Shell accountable for its actions, stressing that the situation highlights the urgent need for stricter enforcement of court rulings and enhanced 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.
Global Gas insisted that Shell’s sale of its assets should not come at the expense of the many communities and commercial entities, like Global Gas, that still have unresolved issues with SPDC.
A few days ago, Renaissance Africa Energy Company Limited announced that the Minister of Petroleum Resources had granted consent for the sale of SPDC to the group.
