Legal Battle Looms Over Shell’s $2.4 Billion Oil License Transfer in Nigeria

The Federal High Court in Lagos has set May 26, 2025, as the date to hear a lawsuit seeking to stop the transfer of Shell Petroleum Development Company Limited’s (SPDC) mining license to a Nigerian consortium, Renaissance African Energy Company Limited.

The case, filed by the Incorporated Trustees of HEDA Resource Centre, challenges the legality of the $2.4 billion transaction and claims the deal violates the Petroleum Industry Act of 2021 and other Nigerian laws. The matter, marked FHC/L/CS/651/25, will be heard by Justice A.L. Allagoa.

In January, Renaissance announced the completion of its acquisition of SPDC’s full equity, with the company now rebranded as Renaissance Africa Energy Company Limited. The deal effectively shifts Shell’s operations offshore, but HEDA, a prominent environmental and human rights group, argues the transaction is an attempt by Shell to escape responsibility for decades of oil pollution in the Niger Delta.

According to HEDA, SPDC is responsible for about 35% of oil spills in Nigeria, translating to an estimated $4.2 billion in environmental damages. The group alleges that SPDC has failed to adequately clean up affected areas and has not complied with environmental assessment and compensation requirements under Nigerian law.

“The transfer of the license is a ploy by Shell to avoid its liabilities,” HEDA claimed in court filings. “This deal, if allowed to stand, sets a dangerous precedent for accountability in the oil and gas sector.”

The suit also questions the qualifications of Renaissance, which was incorporated in 2022, arguing it lacks the experience and financial capacity to manage SPDC’s upstream operations. HEDA contends that allowing such a transfer undermines the national interest and accuses government authorities of failing to exercise due diligence.

Listed as defendants in the suit are SPDC, Renaissance, the Federal Republic of Nigeria, the Attorney General of the Federation, Nigerian National Petroleum Company Limited (NNPC), Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Ministry of Petroleum Resources.

HEDA is seeking a court order to reverse the transfer and restore the mining license to Shell, insisting that neither the oil giant nor the Nigerian consortium is fit to carry out such a significant transaction without meeting the statutory obligations tied to environmental and community welfare.

The group also pointed to several pending lawsuits against SPDC in both Nigeria and the United Kingdom, including a class action involving 15,000 Niger Delta residents, as evidence of Shell’s failure to address its environmental legacy.

With the case drawing public attention and raising questions about corporate accountability and environmental justice, all eyes will be on the Federal High Court when it convenes later next month.

By Admin