Lagos, Nigeria | April 13, 2025 — The Federal High Court in Lagos has scheduled May 26, 2025, for the hearing of a lawsuit seeking to halt Shell Petroleum Development Company Limited’s deal to transfer its mining licence to the Nigerian consortium, Renaissance African Energy Company Limited.

The lawsuit, filed by the Incorporated Trustees of HEDA Resource Centre, contends that the transfer violates several Nigerian laws, including the Petroleum Industry Act (PIA) of 2021. HEDA argues that the deal is a tactic by Shell to avoid its liabilities, particularly concerning the environmental damage caused by its operations in the Niger Delta.

The deal, worth $2.4 billion, involves Renaissance Africa Energy Holdings acquiring Shell’s entire equity in SPDC, with Shell’s operations shifting offshore. This acquisition was completed in January 2025, with Shell’s Nigerian subsidiary set to be renamed Renaissance Africa Energy Company Limited.

However, HEDA, a human rights advocacy group, claims that SPDC’s history of widespread pollution in the Niger Delta cannot be ignored, and that Renaissance Africa, a company founded only in 2022, lacks the capacity to take over SPDC’s operations, particularly in the highly regulated oil exploration sector.

The plaintiffs also raise concerns over the Nigerian government’s approval of the transaction, accusing the authorities of compromise in allowing the deal to proceed. HEDA insists that Shell cannot divest its environmental responsibilities and liabilities to an unqualified company, as it remains accountable for a significant portion of oil spills in the country.

HEDA highlights that Shell is responsible for 35% of Nigeria’s oil spills, amounting to an estimated $4.2 billion in cleanup costs, and that the company has failed to demonstrate sufficient transparency or financial preparedness for environmental remediation.

Additionally, HEDA points to multiple environmental lawsuits against Shell, including a class action lawsuit involving 15,000 victims, and argues that the transfer deal allows Shell to evade its obligations to address the environmental damage it has caused. The advocacy group is asking the court to annul or halt the mining licence transfer deal, emphasizing the negative implications for Nigeria’s national interests and the oil sector.

The case has been assigned to Justice A.L. Allagoa, who will oversee the proceedings. HEDA’s lead counsel, Kunle Adegoke, a Senior Advocate of Nigeria, is requesting that the court reverse or suspend the transfer of SPDC’s oil exploration licence to Renaissance Africa Energy Company.

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