Justice Mohammed Umar of the Federal High Court, Abuja, on Monday ruled that he would avoid colliding with the outcome of a pending Supreme Court judgment on the age-long Gas Processing Agreement (GPA) case between Shell Petroleum Development Company of Nigeria Limited (SPDC) and Global Gas and Refining Limited.
Umar subsequently adjourned the case indefinitely pending the Supreme Court’s judgment.
The development comes weeks after the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), a respondent in the case, declined to take any side in the dispute and rather asked the court to exercise its discretion on the Gas Processing Agreement case.
Nairametrics reports that Monday’s ruling was on Shell’s preliminary objection challenging Global Gas.
What they are saying
- Shell’s legal team sought an order striking out Global Gas’s suit for lack of jurisdiction or, in the alternative, suspending the suit in view of a pending appeal at the Supreme Court.
- Global Gas’ legal team countered Shell, arguing that the Federal High Court ought not to strike out the case or suspend proceedings but should instead grant an interim restraining order against Shell and the NUPRC, while joining the Minister of Petroleum as a third respondent in the case.
- Ruling on the joinder request by Global Gas, Justice Umar held that “it has been made clear by the Supreme Court that an application challenging jurisdiction must be taken first before the issue of joinder.”
- He ruled that the issue of joinder would await the outcome of the appeal filed at the Supreme Court.
- On Shell’s preliminary objection, Justice Umar observed that an appeal had been filed by Global Gas against Shell at the Supreme Court on the same matter, adding the “Supreme Court is now seized with the issue sought to be ventilated” before him.
- He said the dispute pending before the Supreme Court between Global Gas and Shell is undoubtedly similar or related to the instant case before him.
- He held that once a party has appealed to the Supreme Court and a record of proceedings has been transmitted to the apex court, the lower courts lack the jurisdictional competence to hear and determine a similar case in question.
The judge observed that Global Gas had admitted the pendency of the appeal.
He ruled that, in view of the appeal entered at the Supreme Court between Global Gas and Shell, the appropriate venue for litigation is now the Supreme Court.
- “The preliminary objection (of Shell) is answered in the affirmative and in the alternative.
- “This Court shall not be on a collision course with the unknown outcome of the judgment of the Supreme Court,” the judge ruled.
Subsequently, the judge concluded that the case is adjourned sine die (indefinitely) pending the outcome of the appeal at the Supreme Court.
What you should know
Nairametrics previously reported several adjournments in this case, in which Global Gas alleged that Shell failed to supply wet gas in accordance with the terms of their GPA dated March 15, 2002.
Global Gas had sought an order restraining the NUPRC from “approving, authorizing, consenting to, or otherwise granting permission for the $1.3 billion sale/divestment of the assets of the 1st Respondent (SPDC) to Renaissance Consortium.”
Global Gas’ lead counsel, P. Ikweato, SAN, had alleged that while the case is pending, a company had been approved to take over the 1st Respondent (SPDC), whom he described as “a stranger to the Plaintiff.”
He urged the court to grant an Interim Measure of Protection against NUPRC and Shell while joining the Minister of Petroleum as the third Respondent.
On his part, NUPRC’s lawyer, C. Odum, Esq., said the Commission had resolved to leave the decision on the legal submissions to the court’s discretion.
Backstory
In 2021, Shell announced its intention to divest its Nigerian onshore assets due to the incompatibility of its long-term energy transition strategy with operational challenges in Nigeria, including theft and oil spills.
After a pause in 2022, Shell resumed talks in June 2023 to sell its 30% interest in the joint venture (SPDC), which operates onshore and shallow-water oil and gas fields.
- With the inauguration of President Bola Tinubu in May 2023, advisers recommended completing outstanding divestments by international oil producers to boost petroleum output.
- Subsequently, NUPRC established a divestment framework to oversee applications for ministerial consent in the SPDC divestment process.
- The Renaissance Consortium later announced a landmark agreement with Shell International PLC to acquire its entire shareholding in SPDC.
- NUPRC confirmed at the time that SPDC had submitted documents for review and that they were undergoing due diligence.
- However, on September 11, 2024, NUPRC’s Head of Public Affairs, Mrs. Olaide Shonola, denied reports that the Commission had accepted Shell International’s $1.3 billion bid to sell its onshore assets to Renaissance.
In October 2024, NUPRC reportedly rejected the proposed sale, citing Renaissance’s lack of qualification to manage the assets, according to Reuters.
But on March 13, 2025, Shell announced the completion of the sale of SPDC to Renaissance, stating that the completion followed approvals from the Federal Government of Nigeria.
