N-Delta Prime Minister Drags Shell, Renaissance to Court Over OML Sale, Demands Justice for Host Communities

By Peter Onyekachukwu, Asaba

DELTA: A fierce legal storm is brewing in the oil-rich Niger Delta as Chief Tunde Smooth, known as the Prime Minister of the Niger Delta and Bolowei of Ijaw Nation, has filed a suit against oil giant Shell Petroleum Development Company and Renaissance African Energy Limited over the controversial sale of Oil Mining Leases (OMLs) 28, 43, and 45.

The lawsuit, filed at the Federal High Court in Warri through the law firm of Dr. Mudiaga Odje SAN & Co., challenges the legitimacy and fairness of the multi-billion-dollar transaction, which affects key oil-producing communities such as Forcados, Omadino, and Escravos.

Chief Smooth, acting through his company SMU-TUNS Nigeria Ltd, claims that Shell ignored his earlier formal expression of interest to acquire the assets back in 2021, despite fulfilling all requirements, assembling international technical partners, and securing financial backing.

“Our bid was not only serious but backed by capacity, both financially and technically. Yet, Shell chose to act in a manner that undermines transparency and the rights of indigenous companies,” Smooth said in a statement issued through his legal team.

Among the reliefs sought, the suit demands that the court:

Nullify the sale of the OMLs to Renaissance African Energy Limited,

Order a fresh and transparent bidding process that includes indigenous stakeholders, and

Refund the $1.3 billion allegedly paid by Renaissance as a down payment for the assets.

The legal team argues that the process violated provisions of the Nigerian Oil and Gas Industry Act and the Local Content Act, which emphasize preference for indigenous firms in the allocation of oil assets.

Dr. Akpo Mudiaga Odje, lead counsel in the case, stated: “This is a fight for fairness, justice, and the recognition of local capacity. What is at stake is not just an oil license but the economic future of Niger Delta communities who bear the brunt of oil extraction.”

The lawsuit has sparked debate among industry watchers and Niger Delta stakeholders, many of whom are now calling for a halt to opaque asset transfers that exclude credible local investors.

“The host communities are watching. The era of marginalizing indigenous interests in major oil deals is over,” one community leader in Gbaramatu noted in reaction to the suit.

As the legal battle unfolds, attention will now shift to the Federal High Court, where the outcome could set a precedent for future oil asset divestments in Nigeria’s petroleum sector.