By Ade Jacobs
The Shell Petroleum Development Company of Nigeria Limited (SPDC), has accused the Rivers state government of forcefully taking over its Kidney Island asset despite subsisting court cases on the matter.
The state government had purportedly relied on a court auction process to take over the SPDC Joint Venture asset in Port Harcourt, the state’s capital, even when an appeal on the matter, still subsists at the Court of Appeal, SPDC said.
The oil firm considers the action of the state government too hasty as “We remain of the view that until the pending appeals are heard and determined, any exercise of rights including any attempt to take over or seal up SPDC JV’s assets by the Rivers State Government is premature and unlawful.”
The company stated further that any purported exercise of rights allegedly acquired through that process including any attempt to take over or seal up the Kidney Island asset or other assets of the SPDC JV to satisfy claims in pending suits is premature and prejudicial to the ongoing court proceedings, and therefore not recognised.
It cited the Nigerian Petroleum Act, which requires the consent of the Minister of Petroleum for any acquisition or assignment of interests in a licence or lease to take place. In this particular case, no such consent has been granted, the firm said.
Accordingly, SPDC claims that the ruling of the Supreme Court on 27 November 2020 did not decide liability or the size of the award in the underlying suit of Chief Ogbara & Others Vs SPDC, neither did the ruling affirm the purported sale of SPDC JV’s assets to the River State Government as being claimed by the Governor Nyesom Wike-led government.
Read also: JUST IN: Shell loses Supreme Court application to review Ogoni N17bn judgment
Meanwhile, SPDC has obtained a restraining order from a Federal High Court to stop the state government from further taking any action on the matter, pending the hearing of the motion on notice fixed for hearing on 14 January 2021.