The Rivers State Government has secured the enforcement of her interest in the acquisition of 45 per cent equity stake in Oil Mining Lease (OML) 11 and the Shell facility at Kidney Island in Port Harcourt.
Accordingly, Kidney Island, which was once used as Shell Petroleum Development Company marine operational base in Port Harcourt, now belongs to the Rivers State Government pursuant to a certificate of purchase registered in the Lands Registry as No. 6 at Page 6 in Vol. 46, Port Harcourt.
The certificate of purchase was issued by the order of the High Court of Rivers State on July 23, 2019, and September 25, 2019 following the purchase of the lucrative facility.
It would be recalled that the Supreme Court had in November, 2020, reaffirmed Rivers State Government’s acquisition of SPDC interest in OML 11 and Kidney Island when it dismissed the oil firm’s suit which sought to set aside the judgment made against it in 2019 in favour of Ejama-Ebubu community in Eleme Local Government Area.
The Rivers State Attorney General and Commissioner for Justice, Prof Zaccheus Adangor, SAN, made this known, last on Wednesday, while addressing journalists after sealing off Shell’s Kidney Island facility in execution of the judgement of Rivers State High Court.
“You will recall that sometime in 2017, the people of Ejama-Ebubu secured judgement against SPDC and its subsidiaries in the sum of N57.7billion for the damages done to their environment arising from the oil spill from the Trans-Niger pipeline in 1970.
“After that judgement, Shell refused to pay the judgement sum, and thereafter, proceeded to levy execution by attaching the moveable properties of SPDC. But those were found to be grossly insufficient to settle the judgement sum.
“Subsequently, they (Ejama-Ebubu community) approached the court to seek the leave of the court to attach the immovable properties of SPDC, and the court granted them that order. Following the grant of that order, there was a court order for sale of some of the properties of SPDC, including Kidney Island and the acquisition of Shell interest in OML 11”, Adangor said.
Adangor said that after the court order, a public auction was held by the officers of the Rivers State Judiciary during which the state government bided successfully for the purchase of Kidney Island and Shell interest in OML 11.
“So, we are here to execute the judgement of the High Court of Rivers State, and secure the enforcement of the interest acquired by the Rivers State Government”, he added.
The Attorney General stated that the Rivers State Government successfully executed the enforcement as Shell, in all fairness, did not resist the enforcement.
“It was lawfully purchased through public auction ordered by the court pursuant to a court judgement; hence everything went in accordance with the due process of the law.
“The Rivers State Government successfully executed the enforcement, and in fairness to Shell, there was no resistance during the exercise.”
“I was on ground to ensure that everything was done smoothly and in accordance with the law”, Adangor explained.
Also speaking, a representative of the office of the Deputy Sheriff, High Court, Port Harcourt, Mr. Livinus Akere, said the exercise was to take vacant possession of Kidney Island auctioned on August 13, 2019, and OML 11 in Ejama-Ebubu community of Eleme Local Government Area.
It would be recalled that in September, 2019, the Rivers State Governor, Chief Nyesom Wike, had announced the acquisition of SPDC’s 45 per cent interest in OML 11 oilfields and Kidney Island in the state.
The governor, following a court order to auction SPDC assets in the suit against Ejama-Ebubu community, had directed the Rivers State Ministry of Finance Incorporated to make a bid of $150,000,0900.00 supported by a Bank Guarantee and cash payment to the Deputy Sheriff in the sum of N1billion, the later payable to the Judgement Creditors while the former is escrowed.
However, the Shell Petroleum Development Company of Nigeria Limited (SPDC) has kicked against the move by the Rivers State Government, saying that the exercise was “premature”.
A statement signed by Shell Media Relations Manager, Bamidele Odugbesan, last Wednesday, said, “the Shell Petroleum Development Company of Nigeria Limited (SPDC) has dismissed the reported takeover of Kidney Island asset of the SPDC Joint Venture in Port Harcourt by the Rivers State Government in the exercise of rights purportedly acquired through a court auction process that is still the subject of ongoing appeals at the Court of Appeal sitting in Port Harcourt.
“According to SPDC, any purported exercise of rights allegedly acquired through that process including any attempt to take over or seal up the Kidney Island asset or other assets of the SPDC JV to satisfy claims in pending suits is premature and prejudicial to the ongoing court proceedings, and therefore not recognised.
“Under the Nigerian Petroleum Act, any acquisition or assignment of interests in a licence or lease would require the consent of the Minister of Petroleum. No such consent has been given in the case of the purported acquisition by the Rivers State Government.
“In addition, the ruling of the Supreme Court on 27 November 2020 did not decide liability or the size of the award in the underlying suit of Chief Ogbara & Others Vs SPDC neither did the ruling affirm the purported sale of SPDC JV’s assets to the River State Government as being claimed by the state.
“Meanwhile, there is a pending litigation by SPDC in which the Federal High Court has issued an interim order restraining further enforcement of the underlying Agbara judgment pending the hearing of the motion on notice fixed for hearing on 14 January 2021.
“We remain of the view that until the pending appeals are heard and determined, any exercise of rights including any attempt to take over or seal up SPDC JV’s assets by the Rivers State Government is premature and unlawful,” the statement added.