Shell Faces Court Over Mining Licence Transfer

A lawsuit to block Shell Petroleum Development Company Limited’s agreement to transfer its mining license to the Nigerian consortium Renaissance African Energy Company Limited has been scheduled for hearing by the Federal High Court in Lagos on May 26, 2025.

The suit, marked FHC/L/CS/651/25, has been assigned to  Justice A.L. Allagoa

The plaintiff, Incorporated Trustees of HEDA Resource Centre, claims that the mining license transfer deal is in breach of several Nigerian laws, including the Petroleum Industry Act of 2021.

The plaintiff is particularly concerned about the long years of oil pollution resulting from SPDC’s activities in the Niger Delta, terming the mining license transfer deal a ploy by Shell to evade its liabilities.

In January, Renaissance Africa Energy Holdings announced it had successfully completed the landmark transaction between itself and Shell for the acquisition of the entire equity holding in SPDC.

It said that with the deal, SPDC would now be renamed Renaissance Africa Energy Company Limited.

With the $2.4 billion deal, Shell moves its operations offshore.

However, HEDA, a human rights advocacy group, contends that SPDC, which has “on several occasions, been associated with widespread pollution as a result of its mining and exploration activities, cannot neglect or run away from its statutory duties by assigning its liability and assets to the 2nd defendant, who is an unqualified assignee.”

Listed as the 1st defendant is SPDC, while Renaissance is the 2nd defendant.

Also joined as co-defendants are the Federal Republic of Nigeria, Nigeria’s Attorney General and Minister of Justice, Nigerian National Petroleum Company Limited, Nigerian Upstream Petroleum Regulatory Commission, and the Ministry of Petroleum Resources.