A lawsuit has been filed at the Federal High Court in Lagos to stop the transfer of an oil mining license from Shell Petroleum Development Company Limited (SPDC) to Renaissance African Energy Company Limited. The legal action, initiated by the Incorporated Trustees of Human and Environmental Development Agenda (HEDA), challenges the legality, transparency, and regulatory compliance of Shell’s divestment of its onshore assets.
The suit, filed by legal counsel Kunle Adegoke and marked FHC/L/CS/651/2025, lists Shell, Renaissance, and several government entities as defendants, including:
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The Federal Republic of Nigeria
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Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi
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Nigerian National Petroleum Company Limited (NNPCL)
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Nigeria Upstream Petroleum Regulatory Commission (NUPRC)
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Ministry of Petroleum Resources
Renaissance, the acquiring entity, is a consortium of four Nigerian independent oil and gas firms: ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, Waltersmith Group, and Petrolin.
HEDA argues that the transfer violates several provisions of the Petroleum Industry Act (PIA) 2021 and other regulatory frameworks. Key among its allegations are:
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Lack of Transparency: The group claims the transaction failed to meet due process and statutory disclosure standards.
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Regulatory Non-Compliance: HEDA states that the required Environmental Evaluation Study—mandated under the Upstream Petroleum Environmental Regulation of 2022—was neither conducted nor disclosed.
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Threat to Environmental and Community Welfare: The group warns that proceeding with the transaction without meeting environmental safeguards endangers the Niger Delta’s ecosystem and communities.
Citing specific provisions of the PIA—including Sections 10(f), 95(11) and (15), 235, 237, and 238—as well as related environmental and asset transfer regulations (2021–2024), HEDA is urging the court to declare the licence transfer “invalid, unlawful, and not backed by extant laws.” It also seeks a ruling that the government’s approval of the deal is “null and void.”
Shell, which announced the sale in January 2024 and confirmed its completion in March 2025, has yet to respond publicly to the suit. The company stated the divestment aligns with its strategy to simplify its operations in Nigeria by exiting onshore oil production in the Niger Delta and focusing instead on deepwater and integrated gas projects.
With Renaissance now holding a 30% stake in the SPDC Joint Venture—alongside NNPCL (55%), Total E&P Nigeria Ltd (10%), and Agip Energy and Natural Resources Ltd (5%)—the outcome of this case could set a significant precedent for future oil asset transactions and regulatory enforcement in Nigeria’s petroleum sector.
A.I
