Shell Petroleum Development Company(SPDC) of Nigeria Limited has expressed disappointment over the a Rivers High Court judgement which affirmed the enforcement of the purported sale of interests in SPDC’s JV’s assets in Kidney Island and specified interests in OML 11 to the State Government.

The oil company’s disappointment was stated in a statement by its Media Relations Manager, Bamidele Odugbesan, made available to journalists in Port Harcourt.

According to the statement, the SPDC is very disappointed that the Rivers State High Court affirmed the enforcement of the purported sale of interests in SPDC’s JV’s assets in Kidney Island and specified interests in OML 11 to the Rivers State Government.

“In the underlying judgement (Chief Agbara and Others v. SPDC, ), which is being enforced by the sale, the claimants themselves accepted in the High Court in England that the claim was “miscalculated” and “materially overstated”.

“SPDC has therefore filed an appeal and an application for a stay of execution of this recent judgment issued by the Rivers State High Court on 13 August 2020.

“Prior to the instant case, the Rivers State Government had filed a similar case at the Federal High Court Abuja asking the Federal High Court in Abuja to direct the Minister of Petroleum Resources to recognise the same purported interest acquired through auction sale.

“The Rivers State Government withdrew the Abuja case in July 2020 and refiled this new case at the Rivers State High Court without joining the Minister of Petroleum Resources. An application by SPDC to join the Minister of Petroleum Resources to the suit as a necessary party for a just determination of the issues was denied by the Judge.

“Under the Nigerian Petroleum Act, any acquisition or assignment of interests in a licence or lease must have the consent of the Minister of Petroleum Resources.

“The root case, Chief Agbara and Others v. SPDC, which led to the purported sale of interests SPDC JV’s assets is still the subject of ongoing proceedings in several courts, including the supreme court, and it remains the position of SPDC that no payment is due and any purported sale or enforcement of payment is premature and prejudicial to ongoing proceedings.

“The auction sale is also being challenged on appeal by SPDC.The root case has its origin in a spill caused by third parties during the Nigerian Civil War, a challenging period which resulted in significant damage to oil and gas infrastructure in the Niger Delta region.

“While SPDC does not accept responsibility for the spill, the affected sites in Ejama Ebubu community were fully remediated, and this was certified by the government regulator,” it stated.

According to the statement, the claim for N17billion as damages was first brought by the Ejama Ebubu community against SPDC in 2001 in the Federal High Court of Nigeria.

“In 2010, the court gave judgment against SPDC and awarded the claim without SPDC being given reasonable opportunity to defend the facts of the case. Indeed, this case has focused too long on procedural issues and not on its merits – we have always been clear that we are ready to defend this case based on the available facts.

“SPDC appealed the 2010 judgment and obtained an order to stay the execution of the judgment upon the provision of a bank guarantee issued by First Bank of Nigeria Limited in favour of the claimants.

Odugbesan added that in spite of the fact that the matter is being the subject of ongoing proceedings in the Nigerian courts, the claimants went ahead to seek to enforce the judgment in both Nigeria and England.

“The English court last year rejected the claimants’ attempt to enforce the Nigerian court judgment in the UK, referring to a ‘breach of natural justice’ in the proceedings against Shell in Nigeria.

“The English court also found that the claimants had “materially over-stated” the value of the judgment which the claimants admitted was  N34.716billion.

“The court therefore ruled that it would not be just and convenient for a Nigerian judgment to be enforced in the UK which the claimants acknowledge is “miscalculated”.

“On Monday, March 2, 2020, the Federal High Court sitting in Abuja issued an order attaching the sum of N182billion in First Bank of Nigeria Limited’s statutory account with the Central Bank of Nigeria in favour of  Ejama Ebubu community in Rivers State.

“SPDC and other parties affected by the March 2, 2020 order of the Federal High Court filed separate appeals, as well as applied to set aside the order and restrain its execution pending the appeal decision.

“In accordance with the spirit of fair hearing in the Nigerian judicial system, we remain of the view that until the pending appeals are heard and determined, SPDC is not liable to make any payments, and therefore none any of its assets or interest should not be attached to satisfy the judgement.

SPDC operates the SPDC Joint Venture on behalf of the JV partners which include the Federal Government, represented by Nigeria National Petroleum Corporation (NNPC), with 55% participating interest.

According to a statement by Paulinus Nsirim, the Commissioner for Information and Communications, a Rivers State High Court Judge, Justice Charles Nwogu, had ruled in favour of the state government in suit No. PHC/652/CS/2020 filed by the Attorney General of the State against Shell Petroleum Development Company (SPDC) of Nigeria Limited.

The state Government had claimed that SPDC Defendant's/Judgment Debtor Interest in its fixed landed assets comprised in Kidney Island Base, Port Harcourt and interests in Lands comprised in Oil Mining Lease No. 11(OML 11) sold to the Claimant pursuant to the execution of the combined court judgments in Suit No. FHC/PH/231/2001; CA/PH/396/2012 and the Supreme Court Appeal No.SC 731/2017 is consistent with the command contained in Section 287(1) of the Constitution of the Federal Republic of Nigeria, 1999( as amended).

The Claimants further claimed that the continued defiant appropriation (despite the completed sale) of possessory and usufructuary including pecuniary accruals in respect of it's fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 infringes on the Claimant's vested respective rights to title, and pecuniary interests therein.

That SPDC is bound to render account to render accounts to and pay over to the Claimant all accruals from the Defendant's continued appropriation of the pecuniary interests in the said OML 11 including arrears of commercial rents for their use of the said property from the date the Deputy Sheriff of the High Court of Rivers State issued title documents thereon to the Claimant until the Defendant peaceably yields up possession thereof.

The Claimants further claimed that the continued defiant appropriation (despite the completed sale) of possessory and usufructuary including pecuniary accruals in respect of its fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 infringes on the Claimant's vested respective rights to title, and pecuniary interests therein.

That SPDC is bound to render account to render accounts to and pay over to the Claimant all accruals from the Defendant's continued appropriation of the pecuniary interests in the said OML 11 including arrears of commercial rents for their use of the said property from the date the Deputy Sheriff of the High Court of Rivers State issued title documents thereon to the Claimant until the Defendant peaceably yields up possession thereof.

The Court, in the judgment, upheld the claims of the Rivers State Government in the following terms:

SPDC Judgment Debtor's interests in it's fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 sold to the Claimant pursuant to the execution of the combined Court judgments in Suit No. FHC/PH/231/2001; CA/PH/396/2012 and the Supreme Court Appeal No. SC 731/2017 is consistent with the command contained in Section 287(1) of the Constitution of the Federal Republic of Nigeria, 1999( as amended).

That the Defendant's continued defiant appropriation(despite the completed sale) of posssessory and usufructuary rights including pecuniary accruals in respect of it's fixed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 infringes on the Claimant's vested respective rights to title and pecuniary interests therein.

Also that the Defendant is bound to render accounts to and pay over to the Claimant all accruals from the Defendant's continued appropriation of the pecuniary interests in the said OML 11 including arrears of commercial rents for their use of the Kidney Island Base and Jetty from the date the Deputy Sheriff of the High Court of Rivers State issued title documents thereon to the Claimant until the Defendant peaceably yields up possession thereof.

That the Claimant ought to be accorded with all interests, rights, privileges and benefits derivable from its acquisition of Defendant's fixed  landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 in accordance with the title documents issued by the Deputy Sheriff of the High Court of Rivers State.

That the Claimant is entitled to the Defendant's fixed landed assets comprised in its Kidney Island Base, Port Harcourt and the license in Lands comprised in  OML 11 in accordance with the title documents issued by the Deputy Sheriff of the High Court of Rivers State.

An Order compelling the Defendant, their agents, assigns, representatives, privies or whosoever called to accord the Claimant with all rights , privileges and benefits accruable from its purchase of Defendant's fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 in accordance with the title documents issued by the Deputy Sheriff of the High Court of Rivers State.

The Court directed the Defendant to account for and handover to the Claimant all monetary accruals it had made from its continued appropriation of the fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11 from the date the Deputy Sheriff of the High Court of Rivers State issued title documents thereon to the Claimant until the Defendant peaceably yields up possession thereof.

The Court also perpetually restrained the Defendant, their agents, assigns, representatives, privies or howsoever called from embarking on acts or omissions adverse to the title, right and interest of the Claimant over the fixed landed assets comprised in its Kidney Island Base, Port Harcourt and interests in Lands comprised in OML 11.

The Court also condemned what it described as SPDC's continued violation of the legal process by her continued occupation of the said Kidney Island Base, Port Harcourt and other properties already acquired by the Rivers State Government.