Global Gas and Refining Limited has accused Shell Plc of violating a court injucntion in bid to sell its onshore assets to Renansaince Group valued at $2.3 billion.
The oil firm levelled this allegation against Shell on Monday in a press briefing in Abuja, as per a report by This Day newspaper.
The company disclosed that despite pending cases against the oil multinational Shell, it went ahead to consummate the deal.
During the press briefing, Global Gas said that the oil giant was given ministerial approval for the divestment of Shell Petroleum Development firm (SPDC) despite promising to postpone action while the lawsuit was pending, calling the development undesirable.
Chairman of Global Gas and Refining Limited, Mr. Kenneth Yellowe, argued that while the acquisition of sizeable assets by an indigenous company should normally be a reason for great rejoicing and national pride, blatantly undermining a court injunction was not.
Global Gas said that as soon as it became aware of the upcoming divestment, it filed a motion seeking an injunction order to prevent the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from obtaining the necessary ministerial permission, thereby seeking protection from the court.
Global Gas arguments
Chairman of Global Gas and Refining Limited, Mr. Kenneth Yellowe, argued that while the acquisition of sizeable assets by an indigenous company should normally be a reason for great rejoicing and national pride, blatantly undermining a court injunction was not.
Initially, Shell’s proposal to sell its onshore oil assets to the Renaissance group of five oil firms was first turned down by the federal government, which cited a number of related court issues. However, months later, it reversed course and approved the deal last week.
According to Yellowe, Global Gas and Shell have a long-standing contractual agreement that dates back to 1998, at which time the company made significant investments in a processing facility for natural gas.
He said the facility was specifically built for supplies from the Cawthorne Channel Oil and Gas fields of OML 18, costing approximately $0.5 billion.
Shell stated that the company started supplying rich gas to the plant in 2005, noting that after a while, the supplies dwindled and became sporadic and intermittent, leading to Global Gas shutting down its operations.
“There is irrefutable evidence and proof to show that Shell deliberately decided to prioritize the international market over domestic gas supply obligations and to not honor the legal existing obligations between Shell and Global Gas, thereby frustrating this business relationship and leading to substantial losses by Global.
“Specifically, Shell’s refusal to declare the main gas start date under the terms of the gas processing agreement, which would have triggered its contractual responsibilities, was a calculated act of bad faith, and internal documentation from Shell unequivocally reveals this intentional ploy to undermine this agreement, causing significant losses to Global Gas and its partners, jeopardizing its operations,” the company said.
It stated that Global Gas had been following the court’s directive and that the court had ordered the parties to meet in order to discuss potential amicable resolution solutions.
“This defiance not only undermines the rule of law but also sets a dangerous precedent for corporate governance in Nigeria. The sudden and unlawful approval of this divestment during ongoing negotiations is an affront to justice and fairness.
“This is a fight for justice, fairness, and the rule of law. Shell’s impunity must not be allowed to stand. We urge all stakeholders to join us in demanding accountability and fairness for the Nigerian people.” Global Gas added.
