The Shell Petroleum Development Company Limited (SPDC) announced on January 16, 2024, its plans to sell its Nigerian onshore subsidiary to the Renaissance Group, a consortium of five companies. However, this decision led to a legal dispute as one of SPDC’s creditors is seeking to halt the sale until outstanding financial obligations are met as a judgement creditor to SPDC.
The Minister of State for Petroleum Resources confirmed the Government’s commitment to approve SPDC’s divestment of its onshore business to the Renaissance Group in an interview with ARISE NEWS on Thursday, 18 January 2024. He stated that the Government is willing to immediately approve the $2.8 Billion onshore assets sale agreement between SPDC and the Renaissance Group, a consortium of oil companies in Nigeria.
The creditor, represented by OAL, in his suit argues that SPDC’s sale is an attempt to avoid its responsibilities. This argument is based on the fact that SPDC still owes money to the creditor, despite ongoing legal challenges. OAL has obtained an injunction to halt the approval of the sale by the relevant government agencies, including the Minister of State for Petroleum Resources and the Nigerian Upstream Petroleum Regulatory Commission.
We are confident that our legal strategy will prevent the sale of SPDC’s onshore assets until the creditor’s financial claims are addressed.
OAL expertly navigates complex bankruptcy cases, securing favorable outcomes for clients in financial distress through strategic legal counsel.
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