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Supreme Court rules Rivers State Government acquired 45% stake of Shell’s mining lease OML 11 and Kidney Island

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FRI, 27 NOV, 2020-theGBJournal-The Supreme Court Friday dismissed Shell Petroleum Development Company’s (SPDC) suit against the Rivers State Government which sought the setting aside of the N17 billion judgement made against it in 2019, and affirmed Rivers State Government’s acquisition of the mining lease OML11, the State Government said in a press statement released by Kelvin Ebiri, Special Assistant (Media) to the Governor.
Rivers State Governor Nyesom Wike first announced the acquisition of the mining lease and Kidney Island on 30 September 2019 saying in the process that the lease was put on sale and on August 2020, the Rivers Government won its suit filed by the State’s Attorney General against Shell handing over OML11 to it.
Recall that the Supreme Court had in January 2019, upheld the judgement of the Court of Appeal, which awarded N17 billion damages against Shell for a devastating oil spill that ravaged farm lands, rivers and streams in Ejama-Ebubu in Eleme Local Government Area.
Shell, had in July 2019, filed a suit at the Supreme Court to set aside its earlier judgment on the ground that the apex court did not go into the merit of their appeal before upholding the decision of the Court of Appeal.
But, the Supreme Court in a unanimous judgement prepared by Justice Centus Nweze and delivered by Justice Samuel Oseji, asserted that appeal filed by Shell was frivolous and lacks merit.
Justice Oseji declared that the Supreme cannot revisit its earlier decision on the matter. To this end, the court dismissed Shell’s appeal for being incompetent and lacking in merit. In addition, the Supreme Court held that parties are to bear the cost of litigation.
Governor Wike had directed the Rivers State Ministry of Finance Incorporated to make a bid of USD150, 000, 0900 supported by a bank guarantee and cash payment to the Deputy Sheriff in the sum of N1 billion, the later payable to the Judgement Creditors while the former is escrowed.
The Ejama community had filed a suit against Shell over an un-remedied pollution that took place since 1970 as admitted by SPDC vide letters they wrote seeking to clean the spill in 2006 while the case was at the trial court.
The suit between Shell and Ejama-Ebubu community was finally disposed in 2017. But, Shell and its parent companies took out a further appeal to the Supreme Court of Nigeria in 2017, which appeal was considered and dismissed by that Court in a judgement read by Hon. Justice B. Akaahs.
Having lost the matter at the Court of Appeal, the Ejama-Ebubu commenced enforcement by domiciling the judgement in the State High Court and levying execution on SPDC movables in their Industrial Area in Port Harcourt.
Shell, had invited the community and offered then N7 billion as against the judgement debt of N194 billion, which the community refused to accept. Afterwards, the community approached the court for an order granting them leave to sell SPDC’s immovable property comprised in OML 11 and their Kidney Island support base in Port Harcourt.
It was on this basis, that the Rivers State government placed an advertisement of the said immovable assets for auction after the Attorney General and Commissioner for Justice of Rivers State alerted the Government of the State of the matter.
Governor Wike, has said that rather than standby and watch other persons or group purchase Shell’s 45% interest in OML 11 and further exacerbate the poverty of the State, the State Government had to weigh in and bid for the purchase of SPDC interest already set down for auction.
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