Shell Pauses Nigeria Asset Sale Pending Outcome of Court Case
Written by Broad Admin on July 1, 2022
Shell PLC has announced a pause, citing a Supreme Court suit over oil leak filed by a community in Bayelsa State. This comes after announcing a major divestment from its Nigerian onshore services in 2021
According to Bloomberg, this was disclosed in a statement by Osagie Okunbor, managing director of SPDC and chairman of Shell Companies in Nigeria, on Thursday,
Shell Petroleum Development Company of Nigeria Ltd, was issued an order by Nigeria’s Supreme Court which is considering the company’s appeal of an oil-spill penalty of nearly $2 billion.
“We have a strong belief in the merits of our case, which we are vigorously defending,” Osagie Okunbor, managing director of SPDC and chairman of Shell Companies in Nigeria, said in a statement on Thursday. “SPDC will continue to comply with the Supreme Court’s order to maintain the status quo.”
Shell said it welcomed the Supreme Court’s decision to hear SPDC’s appeal and that it would not progress with the divestment of its interest in the venture until the outcome of the appeal. “It remains Shell’s strategic intent to divest its shareholding in SPDC, while continuing to invest in Shell’s deepwater and gas positions in Nigeria,” according to the statement.
The company had received final offers for its onshore oil and gas fields from local firms Heirs Oil and Gas Ltd., and ND Western Ltd., Bloomberg reported earlier this month.