Global Gas Accuses NUPRC Of Approving Shell’s Divestment Despite Court Order

Global Gas and Refining Limited has accused the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) of approving Shell Petroleum Development Company’s (SPDC) divestment of its onshore assets to Renaissance Africa Energy Company Limited in disregard of a court order.

The company claimed that the approval violated a court injunction and undermined Nigeria’s judicial processes, raising questions about corporate governance and regulatory integrity.

Chairman of Global Gas, Kenneth Yellowe, expressed displeasure over the decision, describing it as a blatant disregard for the rule of law. “This is not just a legal issue; it’s a matter of sovereignty and respect for Nigeria’s judiciary. Shell’s actions and NUPRC’s complicity set a dangerous precedent for governance in this country,” he stated during a briefing in Abuja.

At the heart of the controversy is Global Gas’ long-standing dispute with Shell, stemming from a 1998 contractual relationship. The company invested over $500 million in a natural gas processing facility meant to process supplies from Shell’s Cawthorne Channel Oil and Gas Fields (OML 18). However, Global Gas claimed that Shell failed to honour its commitments, prioritising international markets over domestic obligations, leading to significant financial losses and the eventual shutdown of its operations.

Yellowe accused Shell of deploying delay tactics to frustrate legal proceedings and avoid accountability. “Shell employs a ‘Stalingrad Strategy’ to exhaust smaller litigants, a tactic they wouldn’t dare use in their home country or other developed jurisdictions,” he said.

Global Gas’ criticism extended to the NUPRC, which it accused of granting approval for the divestment despite a subsisting court injunction to the contrary. The court had reportedly directed the parties to negotiate an amicable settlement, but the NUPRC’s actions allegedly derailed the efforts. Yellowe warned that such regulatory defiance undermined investor confidence and trust in Nigeria’s legal and business environment.

The Niger Delta, where SPDC has operated extensively, has long been a flashpoint for disputes over environmental degradation and economic marginalisation. Global Gas highlighted the broader implications of Shell’s alleged misconduct, arguing that it perpetuates injustices in the region.

“This is not just about our company; it’s about fairness for all businesses and communities in Nigeria, especially those in the Niger Delta,” Yellowe said, calling for stricter oversight of multinational corporations operating in the country.

Global Gas affirmed its commitment to pursuing all available legal avenues to protect its rights and investments. The company’s allegations against Shell and NUPRC have added a new layer of complexity to the divestment process, with the potential to delay or derail the transaction further.