Divestment Dispute: Shell Questions Federal High Court’s Powers as Bayelsa Ruler Seeks Redress for 40 Years of Pollution

By Solomon OKPO

The Shell Petroleum Development Company of Nigeria Limited (SPDC) has challenged the jurisdiction of the Federal High Court sitting in Yenagoa to entertain a suit contesting Shell UK PLC’s divestment from onshore and shallow water oil assets formerly operated by SPDC.

The suit was instituted by the traditional ruler of Ekpetiama Kingdom in Yenagoa Local Government Area of Bayelsa State, King Bubaraiye Dakolo. The plaintiff is asking the court to declare that the divestment process did not comply with the provisions and guidelines of the Petroleum Industry Act (PIA) 2021.

Beyond the divestment dispute, the suit also seeks redress and remediation for what the plaintiff described as cumulative environmental pollution spanning about 40 years within Ekpetiama and its environs.

The community is a host to the Gbarain-Ubie gas plant and the Gbarain oilfields.
At the hearing on Thursday, counsel to the defendants, Mr Michael Amadi, informed the court that the respondents had filed a notice of preliminary objection challenging the court’s jurisdiction to hear the matter.
In response, counsel to the plaintiff, Mr Chuks Uguru, sought the leave of the court to amend earlier motions in order to correct typographical errors and to serve the defendants with the updated processes.

Presiding Judge, Justice Ayo Emmanuel, granted the request for amendment and subsequently adjourned the matter to March 18 for the hearing of the preliminary objection on jurisdiction.
The defendants listed in Suit No. FHC/YNG/CS/81/2025 include Shell Petroleum Development Company of Nigeria Limited, Shell Petroleum N.V, and Shell UK PLC. Others are the Attorney General of the Federation, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), the Minister of Petroleum Resources, and Renaissance Energy Africa Ltd.

It would be recalled that Renaissance Energy Africa, a consortium of indigenous oil companies, acquired the onshore and shallow water oil and gas assets previously operated by SPDC in March 2025, following the divestment by Shell UK PLC, the parent company of SPDC.

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