OML 11: Rivers Acquires Shell’s 45% Interest
Rivers State Governor, Nyesom Wike, has declared that the state government has fully acquired Shell Petroleum Development Company of Nigeria (SPDC) 45 percent interest in oil mining lease (OML) 11 situated in Ejama Ebubu community, Eleme Local Government Area, and the adjoining Ogoni and other communities in the state.
Governor Wike declared this yesterday, in a state broadcast at the Government House, Port Harcourt, titled: “We will continue to advance the state’s interest, security and prosperity of all.’
He said his administration would always advance the best interest of the state.
“I am delighted to inform you that the Rivers State government has fully acquired Shell Petroleum Development Company of Nigeria (SPDC) 45 percent interest in Oil Mining Lease (OML) 11 situated in Ejama Ebubu community in Eleme Local Government Area and the adjoining Ogoni and other communities of Rivers State.”
The governor explained the background for the acquisition of OML 11, premised on court judgments, which had been registered in the United Kingdom and Nigeria for enforcement.
“This fresh case commenced in 2001 passed through four different justices of that court arising from twists and turns associated with opposed litigations, until it was disposed of about 10 years after in June 2010 by Buba J. (the fifth judge to preside over the matter).
“SPDC and its parent companies appealed the judgment at the Court of Appeal in 2010, which again, suffered the twists and turns passing through six different panels comprising three justices each between 2010 and 2017, before it was finally disposed of by the panel of that court led by Gumel JCA of the Port Harcourt Division. The appeal was dismissed.
“SPDC and its parent companies took out a further appeal to the Supreme Court in 2017, which appeal was considered and dismissed in a judgment read by Hon. Justice B. Akaahs JSC delivering a lead judgment in a unanimous decision. After losing at the High Court, SPDC gave the successful Ejama Ebubu plaintiffs a bond guarantee stipulating that First Bank of Nigerian Limited would pay them the value of the judgment debt and interests thereon in the event that SPDC’s appeal to the Court of Appeal failed. The original bank guarantee is still with the Community.
“When SPDC’s appeal failed at the Court of Appeal, Shell instructed the bank to dishonour their guarantee, which gave rise to a series of six different litigations in various courts against First Bank and the Central Bank of Nigeria. SPDC’s excuse was that they had lodged an appeal at the Supreme Court of Nigeria. The enforcement cases had been to Owerri, Abuja, Lagos, etc in six different lawsuits. On the 11th of January 2019, Shell’s appeal was dismissed at the Supreme Court of Nigeria.
“The judgments of the High Court, the Court of Appeal and the Supreme Court were registered in the United Kingdom for enforcement over there against SPDC parent companies domiciled outside Nigeria’s shores,” he explained.
On the enforcement of the judgment in Nigeria, Wike said: “The Ejama Ebubu community commenced enforcement by domiciling the judgment in the state high court and levying execution on SPDC movables in their industrial area in Port Harcourt; those chattels were attached on the ground but not removed; SPDC invited the community and offered them N7 billion as against the judgment debt of N194 billion, which the community refused to accept. The community approached the court for an order granting them leave to sell SPDC’s immovable property comprised in OML 11 and their kidney island support base in Port Harcourt,” he noted.
Governor Wike explained the reasons government resolved to purchase OML 11: “Rather than stand by and watch other persons or group purchase SPDC 45 percent interest in OML 11 and further exacerbate the poverty of the people of the state, a responsible and responsive state government should weigh in and bid for the purchase of SPDC interest already set down for auction.”
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