Niger Delta leader sues Shell over oil block sale dispute

Chief Tunde Smooth, widely recognized as the Prime Minister of the Niger Delta, has taken legal action against Shell Petroleum Development Company and Renaissance African Energy Limited.

He filed a lawsuit at the Federal High Court in Warri through his legal representatives, Dr. Mudiaga Odje SAN & Co.

The case centres on the contested sale of Oil Mining Leases (OMLs) 28, 43, and 45, which cover key Ijaw and Itsekiri areas, including Forcados, Omadino, and Escravos.

Chief Tunde Smooth, the Bolowei of Ijaw Nation, acting through his company, SMU-TUNS Nigeria Ltd, claims that despite formally expressing interest in acquiring the OMLs as far back as 13 October 2021—and assembling both international technical partners and financial backers—Shell proceeded with the sale without giving his firm fair consideration in what he describes as a non-transparent process.

Key claims in the suit are: recognition of SMU-TUNS as an indigenous company entitled to priority under the Nigerian Oil and Gas Industry Act and the Nigerian Content Development and Monitoring Board (NCDMB) Act.

Alleged breach of due process, with reference to communications from Shell that gave the impression his bid was under review and claims of losses, including damages and expenses incurred based on Shell’s representations.

The suit calls on the Federal High Court to set aside the sale of OMLs 28, 43, and 45 to Renaissance African Energy Limited, order a fresh and transparent bidding process, and refund $1.3 billion to Renaissance, reportedly the deposit already paid for the assets.

The suit, signed by Dr Akpo Mudiaga Odje, Principal Associate of Dr Mudiaga Odje SAN & Co., has triggered discussions among Niger Delta stakeholders on transparency, local participation, and the economic rights of host communities.

READ MORE FROM: NIGERIAN TRIBUNE