• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

      Finance

      Cautious equities trading see gains in Flour Mills, Mobil, Wapco push market cap to ₦21.09trn

      January 15, 2021

      Finance

      CBN issues guidelines for QR codes operation in Nigeria

      January 15, 2021

      Finance

      Global Equities: Positive sentiment buoys global markets’ performance on vaccine rollout, Biden confirmation

      January 13, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Technology

      Africa data centre market to outpace $3bn by 2025, says Turner & Townsend

      14 hrs

      Commodities

      Wheat soars as Russia considers export tax

      14 hrs

      WORLD BUSINESS & ECONOMY

      Only 20% of UK financial services professionals believe firms possess ethical commitment

      January 16, 2021

      Frontpage

      Moody’s sees negative 2021 outlook for sub-Saharan Africa, with severe economic challenges

      January 15, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      NNPC receives $120.49m crude oil receipt in September  

      January 18, 2021

      Frontpage

      NNPC moves to rehabilitate downstream infrastructure, openscontract bids

      January 15, 2021

      Companies

      Ardova enters acquisition talks with Enyo as part of expansion drive  

      January 15, 2021

      Oil and Gas

      NNPC reaffirms commitment to OPEC+ agreement   

      January 15, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Frontpage

Supreme Court affirms Rivers’ purchase of Shell’s assets in OML 11, Kidney Island

Ben Eguzozie
Ben Eguzozie is business a.m. regional lead based in Port Harcourt, providing regional and national  coverage for economy, business and finance
You can contact him on ben.eguzozie@businessamlive.com with stories and commentary.

November 27, 2020924 views0 comments

 

  • State weighed in to bid for assets purchase at $150m – says Gov. Wike
  • Would Shell leave Rivers, having lost a critical case with double-barrelled implications

 

 

Nigeria’s apex court, the Supreme Court on Friday affirmed Rivers State’s acquisition of 45 percent equity stake of Shell Petroleum Development Company (SPDC) in Oil Mining Lease (OML) 11 and Kidney Island in Port Harcourt. Rivers government acquisition of OML 11 and Kidney Island was affirmed by the apex court, when it dismissed the multinational oil firm’s suit which sought the setting aside of a N17 billion judgment made against it in 2019.

Read Also:

  • Rivers receives N78.9bn refund from FG as Wike plans more projects with funds

Governor Nyesom Wike, had in September last year announced the state government’s acquisition of Shell’s 45 percent interest in OML 11 oilfields and Kidney Island in the state. The governor had then directed the state Finance Ministry Incorporated, to make a bid of US$ 150,000,000.00 supported by a bank guarantee and cash payment to the deputy sheriff in the sum of N1 billion, the latter payable to the judgement creditors, while the former is escrowed.

Shell, having lost its matter at the Court of Appeal, the Ejama Ebubu community commenced enforcement by domiciling the judgement in the state High Court, and levying execution on SPDC’s moveables in its Industrial Area (known as Shell I.A) in Port Harcourt.

The oil giant later invited the community, and offered them N7 billion, against the N194 billion judgment debt. But the community rejected the offer. Afterwards, the community approached the court for an order granting them leave to sell SPDC’s immovable property comprised in OML 11 and their Kidney Island support base in Port Harcourt.

It was on this basis, that the Rivers State government placed advertisement of the said immovable assets for auction after the state attorney general and commissioner for justice alerted the state government of the matter.

Governor Nyesom Wike said that, rather than standby and watch other persons or group purchase Shell’s 45 percent interest in OML 11, and further exacerbate the poverty of the people of the state, the state government had to weigh in and bid for purchase of SPDC’s interests already set down for auction.

The Supreme Court had in January 2019, upheld the judgement of the Court of Appeal, which had awarded N17 billion damages against Shell for a devastating oil spill that ravaged farmlands, rivers and streams in Ejama Ebubu in Eleme local government area of Rivers five decades ago. Shell, in July last year, filed a suit at the Supreme Court asking the apex court to set aside its earlier judgment on the grounds that the apex court did not go into the merit of their appeal before upholding the decision of the Court of Appeal. But the apex court in a unanimous judgment prepared by Centus Nweze and delivered by Chukwudumebi Samuel Oseji, asserted that the appeal filed by Shell was frivolous and lacks merit. Oseji declared that the Supreme Court cannot revisit its earlier decision on the matter. To this end, the court dismissed Shell’s appeal for being incompetent and lacking in merit. In addition, the apex court held that parties should bear the costs of their litigation.

The Ejama community had filed a suit against Shell over un-remedied pollution that took place since 1970, as admitted by SPDC vide letters they wrote seeking to clean the spill in 2006, while the case was at the trial court. The suit between Shell and Ejama Ebubu community was finally disposed in 2017. But Shell and its parent companies took out a further appeal to the Supreme Court same year, which appeal was considered and dismissed by that Court in a judgment read by B. Akaahs.

After losing at the High Court, Shell gave the successful Ejama Ebubu plaintiffs a Bond Guarantee stipulating that First Bank of Nigeria Limited would pay them the value of the judgement debt and interests thereon in the event that SPDC’s appeal to the Court of Appeal fails at that Court.

Would Shell leave Rivers, a state it has operated oil business for more than half-a-century, after losing a critical case with double-barrelled implications? Some oil industry analysts do not believe so.

According to Friday Udoh, Shell’s commitment in the state far outweighs the consequences of the N17 billion damages and $150 million stake in OML 11.

Share on Facebook Tweet Email
PreviousAfrica Initiative for Governance scholarship enters selection stage for 2021-2022 awards
NextSunTrust Bank appoints Shittu, chairman, Datti-Yola, non-executive director

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Africa data centre market to outpace $3bn by 2025, says Turner & Townsend
  • Wheat soars as Russia considers export tax
  • Tizeti expands coverage to Edo, introduces low-cost unlimited 4G services
  • NNPC receives $120.49m crude oil receipt in September  
  • Sachet Culture: Fueling consumer buying behaviour or pollution?

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Nigerian shoppers dump online Black Friday sales to get best deals in stores

Frontpage November 25, 2017

1
2

OPEC talks on oil cuts extension beyond March 2018

Frontpage September 12, 2017

3

Election spending: Nigeria govt further depletes excess crude account to $249m

Frontpage March 1, 2019

4

CBN, SEC, NSE shambolic errors that sank Skye Bank to birth Polaris

Frontpage November 5, 2018

5

Govt revenue drops by N42bn as FAAC allocates N610bn

Frontpage February 28, 2019

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.