Shell Challenges Court’s Jurisdiction On Its Divestment Programme

Shell Petroleum Development Company of Nigeria Limited (SPDC) has challenged the jurisdiction of the Federal High Court, Yenagoa to try a suit seeking to stop divestment from its onshore and shallow water assets.
The plaintiffs in the suit alleged that the divestment by Shell did not follow the stipulated guidelines in the Petroleum Industry Act (PIA) 2021.
The suit filed by King Bubaraiye Dakolo, traditional ruler of Ekpetiama in Yenagoa Local Government Area of Bayelsa is also seeking redress and remediation of cumulative pollution of Dakolo’s domain for 40 years.
Ekpetiama community is in the neighbourhood and part of host communities to the Gbarain-Ubie gas plant and Gbarain oilfields.
When the case came up for hearing, Counsel to defendants, Mr Michael Amadi notified the court that the respondents had filed a notice of preliminary objection challenging the court’s jurisdiction to hear the case.
Also, counsel to the plaintiff, Dakolo, Mr Chuks Uguru sought leave of the court to amend motions earlier filed to correct typographical errors and serve parties the updated copies.
Justice Ayo Emmanuel adjourned the case to March 18 to hear the motion of preliminary objection.
Listed as defendants in the suit were Shell Petroleum Development Company of Nigeria, Shell Petroleum N.V, Shell UK PLC.
Others are Attorney General of the Federation, The Nigerian Upstream Petroleum Regulatory Commission, Minister of Petroleum Resources and Renaissance Energy Africa Ltd.
It will be recalled that Renaissance Energy Africa, a consortium of indigenous oil firms in March 2025 acquired the onshore and shallow waters oil and gas assets hitherto operated by SPDC, following the divestments by Shell UK PLC, the parent company to SPDC.