The controversy over the approval of Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Holdings continued yesterday as Global Gas, an indigenous oil firm, described the divestment as unacceptable and a blatant disregard for Nigerian law.

Daily Trust reports that Renaissance had last week announced that it had successfully completed the landmark transaction worth $2.4bn between itself and Shell for the acquisition of the entire (100%) equity holding of Shell in Nigeria.

But the announcement has generated controversy with some organisations threatening lawsuits, faulting the approval.

Chairman, Global Gas and Refining Limited, Mr Kenneth Yellowe in a release yesterday said the divestment is condemnable and unacceptable, adding, “It is also a flagrant affront to the Nigerian judiciary, demonstrating Shell’s well-known blatant disregard for the rule of law and the integrity of the country’s legal system.”

He said the announcement is in clear violation of an order of the Federal High Court of Nigeria in Suit No: FH/ABJ/CS/413/2024, between Global Gas & Refining Limited (GGRL) vs. the Shell Petroleum Development Company Limited and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), which the parties are aware of.

The firm wondered while the federal government approved the divestment despite an Affidavit of Undertaking as to Injunction in Respective (sic) of the Applicant/Applicant’s Motion on Notice dated and Filed 2/9/2024.

According to the statement, the divestment should have been on hold considering that there is a motion for injunction, which requires the parties not to take any step until the application is heard and determined by the court one way or the other.

He argued that the defiance not only undermines the rule of law but also sets a dangerous precedent for corporate governance in Nigeria.

Global Gas notes that the announcements so far made have been by Shell Global and other private entities, and not by NUPRC.

“This reckless disregard for the Nigerian judiciary and for justice delivery in Nigeria will not stand unchallenged,” he said.