14
May
May
NIGER DELTA LEADER SUES SHELL, RENAISSANCE AFRICAN ENERGY OVER SALE OF OMLs 28, 43 & 45
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CapitalTimesNews / 1 month
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Chief Tunde Smooth, popularly known as the Prime Minister of the Niger Delta, has filed a lawsuit against Shell Petroleum Development Company and Renaissance African Energy Limited at the Federal High Court in Warri. The suit, signed by Dr. Akpo Mudiaga Odje, Principal Associate of Dr. Mudiaga Odje SAN & Co., contests the sale of Oil Mining Leases (OMLs) 28, 43, and 45. According to Chief Tunde Smooth, who is also the Bolowei of Ijaw Nation, his company SMU-TUNS Nigeria Ltd expressed interest in acquiring the OMLs on October 13, 2021, and had assembled international technical partners and financial backers ready to fund the acquisition. However, Shell allegedly bypassed his firm in a sale process he claims was neither transparent nor fair. The suit highlights key claims, including recognition of SMU-TUNS as an indigenous firm entitled to priority under the Nigerian Oil and Gas Industry Act and the Local Content Act. It also cites violation of due process, alleging Shell provided misleading communications that gave assurances the bid was under consideration. Chief Tunde Smooth is requesting the Federal High Court to set aside the sale of OMLs 28, 43, and 45 to Renaissance African Energy Limited, order a new transparent bidding process, and refund the $1.3 billion down payment made by Renaissance. The case has sparked discussions among Niger Delta stakeholders about transparency, local content rights, and the economic future of host communities. Renaissance African Energy Limited is part of a consortium that acquired Shell’s onshore assets in Nigeria for $2.4 billion, with some stakeholders expressing concerns over the potential evasion of environmental and social responsibilities.