A lawsuit seeking to halt the transfer of Shell Petroleum Development Company Limited’s mining licence to Renaissance African Energy Company has been filed at the Federal High Court in Lagos by the Incorporated Trustees of Human Environmental Development Agenda.
The legal action, which names Shell, Renaissance, the Federal Republic of Nigeria and four other parties as defendants, challenges the recently completed acquisition deal on grounds of alleged non-compliance with Nigeria’s petroleum industry regulations
Filed under suit number FHC/L/CS/651/2025 by legal representative Kunle Adegoke, the plaintiff contends that Shell’s divestment of its onshore assets violates multiple Nigerian laws, including key provisions of the Petroleum Industry Act 2021.
HEDA’s primary concern centers on the alleged failure to conduct and disclose an Environmental Evaluation Study as required under the Upstream Petroleum Environmental Regulation 2022. The rights group argues that proceeding with the transaction without adhering to these statutory requirements could establish a dangerous precedent that undermines national interest, particularly regarding environmental sustainability and the welfare of Niger Delta communities.
The organization has asked the court to declare the transfer invalid, arguing that it contradicts sections of the PIA Regulations, the Guidelines for Obtaining Minister’s Consent to Assignment of Interest in Oil and Gas Assets 2021, and various environmental regulations enacted between 2022 and 2024.
Furthermore, HEDA seeks a declaration that the government’s approval of the transfer is “unlawful, null and void” due to the alleged non-compliance with relevant statutory provisions.
The defendants include Attorney-General and Minister for Justice Lateef Fagbemi, the Nigerian National Petroleum Company Limited, the Nigeria Upstream Petroleum Nigeria Upstream Petroleum Regulatory Commission, and the Ministry of Petroleum Resources. Attempts to reach Shell’s spokesperson for comment were unsuccessful as of press time.
Renaissance Africa Energy Holdings, a consortium of four Nigerian independent oil and gas companies – ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, the Waltersmith Group, and Petrolin – completed the acquisition of Shell’s entire equity holding in SPDC in March.
Shell had previously announced that the divestment aligns with its strategic intent to simplify its Nigerian operations by exiting onshore oil production in the Niger Delta while focusing future investment on deepwater and integrated gas positions.Following the transaction, Renaissance now controls SPDC’s 30 percent stake in the SPDC Joint Venture, partnering with the government-owned NNPCL (55 percent), Total Exploration and Production Nigeria Ltd (10 percent), and Agip Energy and Natural Resources Limited (5 percent).
