The disposal of Shell Group’s stake in its Nigerian subsidiary, Shell Petroleum Development Company, has reportedly been put on hold.
The sale of the assets has been suspended awaiting the outcome of the IOC’s appeal at the Supreme Court, according to a statement released by the organization on Thursday and signed by its chairman and managing director of SPDC, Osagie Okunbor.
“The Shell Group has confirmed separately that it will not progress the divestment of its interest in SPDC until the outcome of SPDC’s appeal”, the statement partly said.
The SPDC had previously been involved in numerous judicial proceedings involving oil spills.
88 villages in Rivers State received $1.95 billion in compensation from the Court of Appeal and Federal High Court in Owerri for a 2019 oil spill that they claimed Shell was to responsible for and that destroyed their agriculture and waterways.
In the Ejalawa village in the Oken-Ogosu, Egbalor Ebubu/Eleme Local Government of Rivers State, Shell was found guilty of polluting farmlands, rivers, and other environs. The case was decided in favor of the communities.
The neighborhood had asked for and received a court order preventing Shell from selling its assets. Additionally, until the legal matter was resolved, the business was required to deposit the $1.95 billion into an account designated by the court.
Shell has appealed to the Supreme Court while denying responsibility for the leak.
The SPDC’s spokesperson, Bamidele Odugbesan, was reported in a Reuters story as indicating that Shell would continue with the divestments in Nigeria despite the ongoing legal dispute, despite the fact that Shell contested both decisions and is awaiting a hearing.
“The Supreme Court ruling on 16 June was with respect to the contempt proceedings and not related to (the) onshore portfolio review,” Odugbesan said.
However, in a response to Reuter’s report, Osagie said SPDC does not have any intention of breaking the law.
“The Shell Petroleum Development Company of Nigeria Ltd complies with the law, including any court orders, and respects the judiciary and its role in upholding the rule of law. Recent media reporting regarding the 16 June Supreme Court proceedings does not accurately reflect SPDC’s response to the order.
“SPDC will continue to comply with the Supreme Court’s order to maintain the status quo. We have a strong belief in the merits of our case, which we are vigorously defending,” the statement by SPDC said.
