A Senior Advocate of Nigeria (SAN) Mr Mohammed Ndarani, on behalf of over 1,216 residents of host communities filed a claim of N500 billion against Shell Petroleum Development Company for breach of subsisting ?Mareva? injunction.

The News Agency of Nigeria (NAN) reports that a mareva injunction to prevent the dissipation or removal of assets by defendants where it would be to avoid judgment.

The case, filed at the Federal High Court in Abuja with number FHC/ABJ/cs/1300/2024.

This follows a reported 2.8 billion dollars divestment deal between Shell Petroleum Development Company Limited and a group of Nigerian organisations and which the host communities are kicking against.

The communities claimed that the recent transaction between Shell and Renaissance is a clear breach of the subsisting Mareva injunction granted by the Federal High Court, Akure on Sept. 28, 2023.

NAN reports that the injunction restrained Shell from disposing its assets in Nigeria until the conclusion of the case.

The communities are also seeking a perpetual injunction restraining Shell, Renaissance and any other intending investors from entering any further negotiations towards the disposal of the said assets in breach of the injunction.

They prayed the court to order Shell to within 48 hours of the delivery of judgment in this suit, pay the sum of N500 billion as damages and another N5 billion as the cost of prosecuting the suit and legal representation.

The host communities, who sad that they are fish farmers, claimed that they suffered a great loss of properties due to the incessant incidents of oil spillage occasioned by ruptured pipelines belonging to Shell.

The claimants are also seeking a perpetual injunction restraining Shell, Renaissance and any other intending investors from entering into any further negotiations towards the disposal of the said assets.

SPDC JV, which operates 15 onshore and three shallow-water oil mining leases in Nigeria, had earlier this year moved to sell its assets to Renaissance.

Renaissance is a consortium of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin.

The deal is valued at 1.3 billion dollars, with an additional 1.1billion dollars in potential payments related to receivables and cash balances.

The net book value of the assets is 2.8billion dollars as of Dec. 31, 2023, and further contingent payments were expected, depending on business performance and product price fluctuations. (NAN)

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