A lawsuit aimed at halting the transfer of Shell Petroleum Development Company Limited’s mining license to Renaissance African Energy Company Limited has been submitted to the Federal High Court in Lagos.
The Incorporated Trustees of the Human Environmental Development Agenda (HEDA) have filed a lawsuit against Shell Petroleum Development Company Limited, Renaissance African Energy Company Limited, the Federal Republic of Nigeria, along with four additional parties, concerning the transfer of an oil exploration license.
The other defendants include: Mr Lateef Fagbemi, who serves as the attorney-general and Minister for Justice of the Federation; the Nigerian National Petroleum Corporation Limited; the Nigeria Upstream Petroleum Regulatory Commission; and the Ministry of Petroleum Resources.
Recently, Renaissance Africa Energy Holdings, which comprises four Nigerian independent oil and gas firms—ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, the Waltersmith Group, and Petrolin—has finalized the purchase of all equity stakes in SPDC.
The lawsuit submitted by Kunle Adegoke on behalf of the plaintiff prompted HEDA to express worries over potential violations of Nigeria’s laws and regulations that oversee the petroleum sector.
In case number FHC/L/CS/651/2025, the group claimed that Shell’s disposal of the onshore properties to Renaissance broke multiple Nigerian statutes such as the Petroleum Industry Act 2021.
The key points highlighted by HEDA encompass worries regarding the legitimacy, openness, and adherence to regulations of the transaction.
The plaintiff claimed that the procedure did not comply with legal requirements, specifically the obligation to carry out and reveal an Environmental Assessment Study as mandated by the Upstream Petroleum Environmental Regulation of 2022.
The organization contended that permitting the deal to go through without complying with these legal stipulations might establish a perilous precedent and jeopardize national and public interests, specifically concerning environmental preservation and the well-being of communities in the Niger Delta.
HEDA asked the court to rule that according to sections 10(f), 95(11) and (15), 235, 237, and 238 of the PIA Regulations; subsections 4.2.5, 5.2.4, 5.2.5, and 5.4 of the Guidelines for Gaining Approval from the Minister to Transfer an Interest in Oil and Gas Resources issued in 2021; regulations 7 and 8 of the Upstream Petroleum Environmental Regulation from 2022; rules 8(1) and (2), as well as 9(1) and (2) of the Upstream Petroleum Environmental Remediation Regulations established in 2024; along with regulation 13(1)-(3) under the Gas Flaring, Venting and Methane Emissions (Waste Prevention and Pollution Control) Rules enacted in 2023—Shell’s move to hand over its permit for exploring oil to the second defendant “lacks legal standing” and goes against current Nigerian federal laws.
The organization additionally seeks for the court to rule that due to the non-compliance of the defendants with the stipulated provisions under different sections, the approval granted by the government to Shell permitting the transfer or assignment of its oil exploration license to Renaissance is invalid and without legal effect.
As of the publication deadline, representatives from the firm have not been available for remarks.
In March, Shell stated that it had finalized the sale of SPDC to Renaissance, following the announcement made on January 16, 2024.
The major energy company stated that selling off SPDC is consistent with their plan to streamline operations in Nigeria by withdrawing from onshore oil extraction in the Niger Delta region and concentrating instead on making prudent investments in deepwater projects and integrated gas initiatives moving forward.
Currently, Renaissance has taken over SPDC’s thirty percent share in the SPDC Joint Venture, which operates as an unincorporated partnership between the state-run Nigerian National Petroleum Corporation Limited, Total Exploration and Production Nigeria Ltd (with ten percent), and Agip Energy and Natural Resources Limited (holding five percent).
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