Shell pauses sale of Nigerian onshore oil assets

A Shell brand is pictured throughout the European Enterprise Aviation Conference & Exhibition (EBACE) in Geneva, Switzerland, Might 23, 2022. REUTERS/Denis Balibouse/Information

LONDON, June 30 (Reuters) – Shell (SHEL.L) stated on Thursday it had suspended plans to promote its onshore oil belongings in Nigeria, complying with a Supreme Courtroom ruling that stated it needed to await the result of an enchantment over a 2019 oil spill.

“Shell welcomes the Nigerian Supreme Courtroom’s choice to listen to the enchantment of the Shell Petroleum Growth Firm of Nigeria Ltd (SPDC) on this case,” the London-based firm stated in an announcement.

“Till the result of SPDC’s enchantment, Shell won’t progress the divestment of its curiosity in SPDC.”

Nigeria’s Supreme Courtroom on June 16 upheld a decrease court docket ruling that stopped Shell from promoting its belongings in Nigeria till a dispute over a decrease court docket choice to award a Niger Delta group $1.95 billion in compensation over the spill is resolved. learn extra

Shell needs to promote its 30% stake in SPDC, which it additionally operates, because the three way partnership struggles with lots of of spills which might be induced largely by theft.

The corporate has confronted a string of court docket instances prior to now over oil spills.

Shell stated that it stays its “strategic intent” to promote its SPDC stake whereas persevering with to put money into offshore oil and fuel in addition to onshore fuel manufacturing.

“Nevertheless, such funding would require a secure and aggressive funding local weather,” Shell stated.

In a separate assertion, Osagie Okunbor, Managing Director of SPDC and Shell’s nation chair stated the three way partnership “will proceed to adjust to the Supreme Courtroom’s order to keep up the established order.”

Eighty-eight communities in Rivers state had been awarded the compensation for an oil spill they blamed on Shell and which broken their farms and waterways. Shell denies inflicting the spill.

The group sought and was granted a court docket order blocking Shell from disposing its belongings. The corporate was additionally ordered to place the $1.95 billion into an account nominated by the court docket till the authorized dispute was settled.

(This story corrects in paragraph 5 to say Shell holds a 30%, not 55%, stake in SPDC.)

Reporting by Ron Bousso; Enhancing by Jan Harvey and David Evans

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