Firm condemns approval of shell’s divestment, alleges disregard for rule of law

Global Gas and Refining Limited today in Abuja has expressed disapproval over the recent ministerial approval of Shell Petroleum Development Company’s (SPDC) divestment of its onshore assets to Renaissance Africa Energy Company Limited.

The company accused Shell of defying a court injunction and undermining Nigeria’s legal processes, labeling the move as a direct affront to the rule of law and national sovereignty.

Kenneth Yellowe, Chairman of Global Gas, described the approval as “extremely unwelcome,” stating that Shell’s actions blatantly disregard an existing court order restraining the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from approving the transaction.

He emphasized that Global Gas is in ongoing negotiations with Shell to resolve disputes over substantial financial losses incurred due to alleged breaches of contract by the multinational company.

Yellowe highlighted what he called Shell’s “Stalingrad strategy,” a tactic aimed at delaying legal proceedings to exhaust smaller litigants. He accused the company of habitual non-compliance with Nigerian court orders, a practice he claims Shell would not dare exhibit in its home country or other developed nations. “This is a clear demonstration of Shell’s contempt for legal processes, good governance, and the rights of Nigerian businesses and communities, particularly in the Niger Delta,” Yellowe said.

Global Gas detailed its troubled partnership with Shell, which began in 1998. The company invested over $500 million in a natural gas processing facility to handle supplies from Shell’s Cawthorne Channel Oil and Gas fields (OML 18). While operations started in 2005, Shell allegedly prioritized international markets over domestic obligations, resulting in dwindling gas supplies that forced Global Gas to shut down its operations.

The company also accused Shell of refusing to declare the “Main Gas Start Date,” a contractual milestone that would have activated Shell’s responsibilities. Internal documents purportedly show a deliberate strategy by Shell to frustrate the agreement, causing significant financial losses to Global Gas and its foreign investment partners.

Global Gas further accused NUPRC of violating a court order by granting approval for the divestment despite an injunction. The court had directed Shell and Global Gas to explore amicable settlement options, which Global Gas claims it has complied with. Yellowe warned that the approval sets a dangerous precedent for corporate governance in Nigeria, eroding trust in the judiciary and undermining investor confidence.

Global Gas called on the Nigerian government, regulatory bodies, and international stakeholders to hold Shell accountable. “This fight is not just about Global Gas; it is about justice, fairness, and the rule of law for all Nigerian businesses and communities, especially those in the Niger Delta,” Yellowe said. The company pledged to pursue all legal avenues to protect its rights and investments.