The Shell Petroleum Development Company of Nigeria Limited (SPDC) has dismissed the purported takeover of the Kidney Island asset of the SPDC Joint Venture in Port Harcourt by the Rivers State Government which claimed to have acquired the asset through a court auction process.
In a swift reaction, the SPDC contended that the claim of the Rivers State Government was baseless given as it argued, that matter is still the subject of ongoing appeals at the Court of Appeal sitting in Port Harcourt.
According to SPDC, any purported exercise of rights allegedly acquired through that process including any attempt to take over or seal up the Kidney Island asset or other assets of the SPDC JV to satisfy claims in pending suits is premature and prejudicial to the ongoing court proceedings, and therefore not recognised.
The SPDC noted that under the Nigerian Petroleum Act, any acquisition or assignment of interests in a licence or lease would require the consent of the Minister of Petroleum whereas no such consent has been given in the case of the purported acquisition by the Rivers State Government.
In addition, the SPDC noted that the ruling of the Supreme Court on November 27, 2020 did not decide liability or the size of the award in the underlying suit of Chief Ogbara & Others Vs SPDC noting that neither did the ruling affirm the purported sale of SPDC JV’s assets to the River State Government as claimed by the state.
Meanwhile, the SPDC pointed out that there is a pending litigation by the company in which the Federal High Court has issued an interim order restraining further enforcement of the underlying Agbara judgment pending the hearing of the motion on notice fixed for hearing on 14 January 2021.
SPDC therefore called on the Rivers State Government and those claiming interest in the SPDC Kidney Island asset to stay further action to allow the due process of the law as enshrined in the Nigerian Constitution.
“We remain of the view that until the pending appeals are heard and determined, any exercise of rights including any attempt to take over or seal up SPDC JV’s assets by the Rivers State Government is premature and unlawful.”
Zacchaeus Adangor
On its part, the Rivers State Government yesterday (Wednesday 12/23/12) claimed that it secured the enforcement of her interest in the acquisition of 45 percent equity stake in the Oil Mining Lease (OML) 11 and Kidney Island in Port Harcourt.
But the claim of the Rivers State Government in the announcement in which it contended that it has taken ownership of the oil assets in contention was unequivocal:
“Accordingly, Kidney Island, which was once used as Shell Petroleum Development Company operational base in Port Harcourt, now belongs to the Rivers State Government pursuant to a certificate of purchase registered in the Lands Registry as No. 6 at page 6 in Vol. 46, Port Harcourt. The certificate of purchase was issued by the order of the High Court of Rivers State on July 23, 2019 and September 25, 2019 following the purchase of the facility. It will be recalled that the Supreme Court had on November 2020 reaffirmed Rivers State Government acquisition of SPDC interest in OML 11 and Kidney Island when it dismissed the oil firm suit which sought to set aside the judgment made against it in 2019 in favour of Ejama-Ebubu community”
The Rivers State Attorney General and Commissioner for Justice, Professor Zaccheus Adangor, SAN made the state’s position known on Wednesday while addressing journalists after sealing off Kidney Island in execution of the judgement of Rivers State High Court.
His continued: “You will recalled that sometime in 2017, the people of Ejama-Ebubu secured judgement against SPDC and its subsidiaries in the sum of N57.7BillionNaira for the damages done to their environment arising from the oil spill from the Trans-Niger pipeline.
“After that judgement, Shell refused to pay the judgement sum and thereafter proceeded to levy execution by attaching the moveable properties of SPDC. But those were found to be grossly insufficient to settle the judgement sum.
“Subsequently, they (Ejama-Ebubu community) approached the court to seek the leave of the court to attach the immovable properties of SPDC and the court granted them that order. Following the grant of that order, there was a court order for sell of some of the properties of SPDC including Kidney Island and the acquisition of Shell interest in OML 11.”
Professor Adangor said after the court order, a public auction was held by the officers of the Rivers State Judiciary and the State Government bided successfully for the purchase of Kidney Island and Shell interest in OML 11.
“So we are here to execute the judgement of the High Court of Rivers State and secure the enforcement of the interest acquired by the Rivers State Government.”
The Attorney General stated that the Rivers State Government successfully executed the enforcement as Shell in all fairness did not resist the enforcement.
“It was lawfully purchased through public auction ordered by the court pursuant to a court judgement, hence everything went in accordance with the due process of the law. The Rivers State Government successfully executed the enforcement and in fairness to Shell, there was no resistance during the exercise. I was on ground to ensure that everything was done smoothly and in accordance with the law.”
Also speaking, a representative of the office of the Deputy Sheriff, High Court, Port Harcourt, Mr. Livinus Akere said the exercise was to take vacant possession of Kidney Island auctioned on the 13 August, 2019 and OML 11 in Ejama Community of Eleme Local Government Area.
In September 2019, the Rivers State Governor, Nyesom Ezenwo Wike had announced the acquisition of SPDC 45% interest in OML 11 oil fields and Kidney Island in the State.
The governor following a court order to auction SPDC assets in the suit against Ejama-Ebubu community, had directed the Rivers State Ministry of Finance Incorporated to make a bid of USD 150,000,0900.00 supported by a Bank Guarantee and cash payment to the Deputy Sheriff in the sum of N1 billion, the later payable to the Judgement Creditors while the former is escrowed.
