- Advertisement -spot_img
28.2 C
Lagos
HomeTop NewsShell suspends sale of its Nigerian $2.3 bln onshore oil assets

Shell suspends sale of its Nigerian $2.3 bln onshore oil assets

- Advertisement -spot_img

Shell said on Thursday it had suspended plans to sell its onshore oil assets in Nigeria, complying with a Supreme Court ruling that said it had to wait for the outcome of an appeal over a 2019 oil spill.

“Shell welcomes the Nigerian Supreme Court’s decision to hear the appeal of the Shell Petroleum Development Company of Nigeria Ltd (SPDC) in this case,” the London-based company said in a statement.

“Until the outcome of SPDC’s appeal, Shell will not progress the divestment of its interest in SPDC.”

Nigeria’s Supreme Court on June 16 upheld a lower court ruling that stopped Shell from selling its assets in Nigeria until a dispute over a lower court decision to award a Niger Delta community $1.95 billion in compensation over the spill is resolved.

Shell wants to sell its 30 per cent stake in SPDC, which it also operates, as the joint venture struggles with hundreds of spills that are caused mostly by theft.

Heirs Oil and Gas Ltd, majorly owned by Tony Elumelu and ND Western Ltd had shown interest in buying Shell Plc’s 30 per cent interest in the joint venture onshore oil and gas fields.

READ ALSO: Terrorists kill over 40 people, including security officials, abduct scores in Shiroro, Niger State

The two firms would have submitted their bids to Shell on Friday, June 10, but with the Supreme Court judgement, the process was truncated.

The company has faced a string of court cases in the past over oil spills.

Shell said that it remains its “strategic intent” to sell its SPDC stake while continuing to invest in offshore oil and gas as well as onshore gas production.

“However, such investment will require a stable and competitive investment climate,” Shell said.

In a separate statement, the Managing Director of SPDC and Shell’s country chair said the joint venture “will continue to comply with the Supreme Court’s order to maintain the status quo.”

Eighty-eight communities in Rivers state were awarded the compensation for an oil spill they blamed on Shell and which damaged their farms and waterways. Shell denies causing the spill.

The community sought and was granted a court order blocking Shell from disposing of its assets. The company was also ordered to put the $1.95 billion into an account nominated by the court until the legal dispute was settled.

Join Our Mailing List!

* indicates required
- Advertisement -spot_img
- Advertisement -spot_img
Must Read
Related News
- Advertisement -spot_img