Over 1,216 residents from host communities have filed a N500 billion lawsuit against Shell Petroleum Development Company (SPDC) for allegedly breaching a “Mareva” injunction. The suit, filed at the Federal High Court in Abuja under case number FHC/ABJ/cs/1300/2024, was initiated by Senior Advocate of Nigeria, Mohammed Ndarani, on behalf of the communities.
A Mareva injunction is a legal measure designed to prevent defendants from dissipating or removing assets to avoid a court judgment. The host communities claim that Shell violated a subsisting Mareva injunction granted by the Federal High Court in Akure on September 28, 2023, which barred Shell from disposing of its Nigerian assets until the conclusion of the ongoing case.
The lawsuit was triggered by a reported $2.8 billion divestment deal between Shell and a consortium of Nigerian organizations, including Renaissance. The host communities argue that this transaction directly contravenes the court’s injunction and have called for a perpetual injunction to prevent Shell, Renaissance, or any other potential investors from continuing negotiations to dispose of the assets.
In addition to the perpetual injunction, the communities are demanding that Shell be ordered to pay N500 billion in damages within 48 hours of the court’s judgment, along with N5 billion to cover the cost of prosecuting the suit and legal fees. The residents, primarily fish farmers, claim they have suffered significant property losses due to repeated oil spills from ruptured Shell pipelines.
Earlier this year, SPDC JV, which manages 15 onshore and three shallow-water oil mining leases in Nigeria, moved to sell its assets to Renaissance. Renaissance is a consortium comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin. The deal is valued at $1.3 billion, with an additional $1.1 billion in potential payments linked to receivables and cash balances. The net book value of the assets was estimated at $2.8 billion as of December 31, 2023, with further contingent payments expected based on business performance and product price fluctuations.
