N800bn judgment debt against Shell: Supreme Court orders parties to ‘maintain status quo’

By Ogaga Ariemu

More troubles for Shell Petroleum Development Company (SPDC) over N800 billion oil spill judgment debt as the Supreme Court of Nigeria presided over by Justice Kudirat Kekere-Ekun ordered all parties to maintain Status Quo in the suit while parties file written addresses for all pending applications.

Nigerian NewsDirect learnt that a panel of five judges gave the order last Thursday.

The panel delivered judgement on appeal number SV/CV/398/2022 filed by Osagie Okunbor and others over alleged disobedience of the orders of the court.

Other members of the judgement panel include Chima Centus Nweze, Uwani Musa Abba Aji, Helen Moronkeji Ogunwumju, and Adamu Jauro.

The suit was adjourned to 3rd November, 2022 for hearing.

Kekere-Ekun held that, “the pending applications filed before the court are contentious and cannot be taken now.”

“The parties shall file written addresses. The parties are hereby ordered to maintain the status quo pending the hearing of all the contentious applications,” the ruling reads.

The contentious applications before the court comprise an application dated April 4, 2022, seeking an order staying further committal proceeding in appeal number, CA/OW/489/2020, and another application dated April 21, 2022, seeking an order setting aside ex-debito justitiae, notice of appeal filed in appeal number SC/CV/393/2022, and an application filed on April 29, 2022, asking the apex court for an order striking out ex-debito justitiae, notice of appeal filed in appeal no. SC/CV/393/2022.”

The implication of this ruling is that Shell cannot receive bids from any prospective investors for its onshore and shallow offshore assets until the the suit is determined, following the restraining order earlier granted by the Court of Appeal, Owerri restraining the sale of such assets.

Ignoring the Appeal Court judgment given in 14th March 2022, Owerri which stopped Shell from selling any of its assets in Nigeria until a decision is reached on the company’s appeal suit over the N800 billion ($2 billion) penalties, Bloomberg reported last week that the Company is on the verge of receiving final bids for their onshore and shallow offshore assets in Nigeria.

On November 27, 2020, Justice T. G. Ringim of the Federal High Court, Owerri, Imo State, ruled that SPDC, Shell International Exploration and Production Company, and the Nigerian National Petroleum Corporation (NNPC) were liable for oil spillage from their facility in Ejalawa community in Oken-Ogosu swamp farmlands in Egbalor of Ebubu/Eleme Local Government Area of Rivers State.

The ruling was delivered on the suit brought by a local community leader, Isaac Torchi, and 87 members of the Ejalawa community against SPDC, SIE&P BV, and NNPC dated January 16, 2020, over oil spillage which they claimed damaged their environment as well as a source of livelihood.

The company, the most significant international oil major operating in Nigeria, has faced a string of court cases in the past over oil spills.

Last year, Shell agreed to pay a Nigerian community $111.68 million to settle a case over an oil spill that took place more than 50 years ago.

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