Divestment to Renaissance: A Socio-Legal Betrayal of the Niger Delta.

Fortunately, or unfortunately, Shell has finalized the $2.4 billion sale of The Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance Africa Energy Company, concluding its nearly century-long onshore operations in Nigeria.

The transaction includes SPDC’s 30% stake in the SPDC Joint Venture, covering 18 oil mining leases, now operated by Renaissance, a consortium of Nigerian and international energy firms. Shell’s other Nigerian businesses, such as Shell Nigeria Exploration and Production Company Limited (SNEPCo), Shell Nigeria Gas Limited (SNG), and its 25.6% stake in Nigeria LNG Limited (NLNG), were not part of the deal.

In the same light, the Federal High Court’s (November 2024) rulings in Suit No: FHC/PH/CS/123/2022 and Suit No: FHC/PH/CS/124/2022 dismissed protests by the Belema, Oloinama, Oko-ama, and Soku communities in Rivers State against Shell’s divestment of OML 25 and OML 23, respectively. These decisions highlight the Petroleum Industry Act’s (PIA) failure to ensure community participation in divestments despite its goal of “peaceful co-existence” (see section 234).

The communities sought to block Shell’s divestment to Renaissance, demanding a 35% bid share and sale to Belema Oil Producing Limited, citing local sensitivity, but the court…