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Federal High Court Permits Shell, Global Gas To Pursue out-of-court Settlement in $1.3 Billion asset dispute…

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The Federal High Court has permitted the Shell Petroleum Development Company of Nigeria Limited and Global Gas and Refining Limited to explore an out-of-court settlement regarding the latter’s allegation that Shell failed to supply wet gas in accordance with the terms of a Gas Processing Agreement dated March 15, 2002.

 

Justice Inyang Ekwo approved the parties’ move to settle on Monday, September 23, 2024, in the suit filed by Global Gas’s legal team.

 

 

The applicant seeks an order restraining the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) from “approving, authorizing, consenting to, or otherwise granting permission for the ($1.3 billion) sale/divestment of the assets of the (SPDC) 1st Respondent” to Renaissance Consortium.

 

 

Claims and Counterclaims 

The Executive Chairman of Global Gas, Mr. Ken Yellowe, had stated before the court that his company instituted arbitral proceedings against Shell, alleging that it failed to supply wet gas in line with the terms of the Gas Processing Agreement dated March 15, 2002.

 

Yellowe, through his lawyer, Patrick Ikweato (SAN), stated that unless the court grants an order temporarily safeguarding the “assets” in dispute from being sold, its 2002 business deal with Shell may be jeopardized.

 

 

The applicant further submitted that the dispute is already before the Supreme Court of Nigeria, but the NUPRC is not a party at that apex court, hence the need for the trial court to restrain the statutory agency of the Federal Government of Nigeria.

 

“In the event of such a scenario, the Applicant will be without any remedy for settling the subsisting dispute over the manifest breach/violation of the 1st Respondent’s obligations to supply Rich Gas to the Applicant as agreed in the GPA dated March 15, 2002.

 

 

The instant application for the grant of an Interim Measure of Protection merely seeks to preserve the Applicant’s rights against the intended divestment/sale of SPDC’s onshore facilities as publicly announced by its parent company, Shell PLC,” Yellowe stated in an affidavit.

 

 

In the applicant’s further affidavit, Celestine Ezeokeke stated that he was aware that while the suit is pending before the court, “the NUPRC publicly announced/advertised that it has begun due diligence for the divestment of the Shell Petroleum Development Company (SPDC) assets, totaling crude oil and condensates of 6.73 billion barrels reserve, to Renaissance African Energy Company Limited (Renaissance).”

 

SPDC’s legal team, in a counter-affidavit , maintained that it “did not sell its onshore assets and facilities in Nigeria to anyone.”

 

The submissions by SPDC’s legal team before the Federal High Court in Abuja came about six months after its parent company, Shell Plc, announced it had reached an agreement to sell its Nigerian onshore oil assets to the local consortium for over $1.3 billion, pending government approval.

 

However, in its counter-affidavit, SPDC’s Legal Counsel, Global Litigation (Sub-Saharan Africa), Mr. Kingsley Osuh, informed the court that the dispute between his company and Global Gas is already before the Supreme Court for final determination.

 

 

 

He added that the transaction with Renaissance was not an asset sale but a share sale transaction whereby the SPDC’s shareholder agreed to sell its shares in the SPDC to a company called Renaissance.

 

“The share sale transaction did not and will not affect the 1st Respondent’s 30% participating interest in eighteen (18) Oil Mining Leases (“OML”) that are currently part of the 1st Respondent’s Joint Venture, with the 1st Respondent as Operator of the unincorporated Joint Venture with the Nigerian National Petroleum Company Limited, Total Energies EP Nigeria Limited, and Nigerian Agip Oil Company,” Shell stated.

 

 

He added that the applicant’s claims are for liquidated sums, that is, a compensation figure for an alleged breach of contract, stating that if its claim is upheld by the courts, the SPDC, as a corporate entity, is capable of paying the compensation to the applicant.

 

What Transpired in Court

At the resumed sitting on Monday, Justice Ekwo said that at the last proceedings, the applicant’s lawyer, Ikweato, applied to the court to allow the parties to explore an out-of-court settlement.

 

Ikweato responded that he had written to Shell several times regarding that settlement and eventually received a letter from Shell last Friday.

 

 

Last Friday, we got a letter from the first respondent (Shell). My Lord, the interesting thing is that despite all that we said in that letter, the first respondent has now agreed to present the proposal for the settlement to the Joint Venture Partners.

 

“So in that spirit, I pray that your Lordship will give us another date to see what comes out,” he said while drawing the court’s attention to other pending applications in the matter.

 

Chukwuka Ikwuaso SAN, counsel for Shell, confirmed that his client did send a letter to the plaintiff’s counsel.

 

He suggested that the matter be adjourned for a report on settlement or hearing.

 

 

So that if by the next time we come, the parties have not settled, we can proceed with the hearing,” he added.

 

Ekwo stated that he wants to allow the parties to explore out-of-court settlement if they wish.

 

“I don’t want to interfere in the parties’ settling. I will give some days; if you come back and say you’ve not settled, I will know the proper order to make,” Ekwo said, adjourning the case to November 11, 2024, for a report on the settlement.

 

Backstory

 

In 2021, Shell announced its intention to divest its Nigerian onshore assets due to the incompatibility of its long-term energy transition strategy with the challenges of operations in Nigeria, marked by theft and oil spills.

 

 

After a pause in the divestment process in 2022, Shell resumed talks in June 2023 to sell its 30% interest in the joint venture known as SPDC, which operates onshore and in shallow-water oil and gas fields.

 

With President Bola Tinubu’s new administration, which began in May 2023, advisers recommended closing outstanding divestments sought by international oil producers to enhance petroleum output.

 

Some months ago, NUPRC established a divestment framework to oversee the evaluation of applications for ministerial consent regarding the Shell Petroleum Development Company of Nigeria Ltd. (SPDC) divestment process.

 

 

However, civil society groups, led by Amnesty International, have called on the Nigerian government to block Shell Plc’s proposed sale of its onshore oil business in Nigeria.

 

Renaissance Consortium stated, “We are pleased to announce the signing of a landmark transaction with Shell International PLC to acquire its entire shareholding in The Shell Petroleum Development Company of Nigeria Limited (SPDC).”

 

Renaissance, a company comprised of Petrolin Group, has been a preferred partner in the petroleum sector, supporting African business opportunities by connecting them with global realities.

 

 

For the Shell Petroleum Development Company of Nigeria Limited (SPDC) deal with Renaissance Consortium, NUPRC later revealed that documents have been submitted by SPDC and are “undergoing due diligence.”

 

Meanwhile, in a statement on September 11, 2024, NUPRC’s Head of Public Affairs and Corporate Communication, Mrs. Olaide Shonola, denied reports claiming that the Commission has accepted Shell International Plc’s bid to sell its onshore assets to Renaissance in a transaction worth $1.3 billion.

 

 

As part of the Commission’s commitment to transparency and accountability, it will communicate its position on the transaction to the public at the appropriate time. Industry stakeholders and the general public are advised to disregard the publication as it is baseless.”

 

 

NAIRAMETRICS.

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Nigerian Police Refund N1million Cash Extorted From Corps Members In Lagos As Officers Undergo Probe

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Three members of the National Youth Service Corps (NYSC) have been refunded N1million, which was allegedly extorted by four police officers in Surulere area of Lagos State.

 

The officers reportedly demanded the money after the corps members failed to provide a physical copy of a driver’s licence.

 

 

An X user, Oluyemi Fasipe, had shared details of the incident, stating that one of the corps members was also forced to transfer Bitcoin worth $842 to the officers.

 

 

The Lagos Police Public Relations Officer, Benjamin Hundeyin, confirmed the officers involved had been identified and were undergoing interrogation.

 

“The rogue men of the Area C command of the @LagosPoliceNG who extorted over 1 million naira from the corp members have refunded the money,” Fasipe tweeted on Friday, October 4.

 

 

Hundeyin had stated that the outcome of the trial would determine the culpability of the officers, which could lead to their dismissal. Fasipe also expressed appreciation for the efforts of both Hundeyin and the Lagos State NYSC office in facilitating the refund.

 

He further added, “I like to appreciate @BenHundeyin and the @officialnyscng Lagos State for their efforts too. I also like to use the opportunity to say hello to my friend in Delta State, @Brightgoldenboy.”

 

 

 

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FBI Requests EFCC’s Assistance To Arrest Two Nigerians, Shodiya Babatunde and Yinka Ahmed For Stealing $13Million From American Healthcare Provider…

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The Federal Bureau of Investigation has urged the Economic and Financial Crimes Commission to help track down and apprehend two Nigerian fugitives wanted over a multimillion-dollar healthcare scheme in the United States.

 

 

Babatunde Shodiya and Yinka Jamiu were indicted on September 25 by a grand jury at the U.S. District Court of Minnesota over their involvement in a scheme that saw several healthcare providers lose $13 million between October 2020 and 2024.

 

American officials said the suspects are citizens and residents of Nigeria and urged Nigeria’s frontline anti-graft office to help locate and take them into custody, according to officials familiar with the matter who briefed Peoples Gazette.

 

 

The U.S. officials have reached out to us and they said the suspects are hiding in the country,” an EFCC agent said under anonymity to comment on an ongoing investigation. “We have an obligation to honour the request of our U.S. counterparts as part of our longstanding collaboration to combat cross-border crimes.”

 

Messrs Shodiya and Jamiu targeted at least four Minnesota-based health service providers and tricked them into paying $13 million to a manipulated account rather than the intended beneficiaries.

 

 

Knowing that Optum Pay was the preferred payment system that major health service providers adopted in Minnesota, Messrs Shodiya and Jamiu created a fake domain to divert payment for health plans into an account they set up.

 

After creating a fake domain, fairviewhospitals.org, they opened email accounts in the name of the hospital’s CEO, executive vice-president and business analyst.

 

 

With the fake addresses, Messrs Shodiya and Jamiu sent emails to Fairview employees directing them to “access an Internet link and provide information,” including their usernames and passwords.

 

From the information supplied by the unsuspecting staff, the duo gained access to Fairview’s Optum Pay account and changed the bank information to another account.

 

“Defendants Babatunde and Ahmed then changed the banking information on vendor accounts in order to direct third-party vendors to transfer funds intended for Fairview Health into unauthorised bank accounts controlled by the defendants and their co-conspirators,” the indictment sheet stated.

 

 

While posing as Fairview Health CEO and executives, the suspects contacted vendor companies, including Blue Cross Blue Shield, to update their payment accounts with new ones.

 

“On or about July 29, 2020, Blue Cross Blue Shield of Minnesota made approximately 18 wire transfers totalling nearly $8 million to an account controlled by the defendants,” stated the indictment.

 

Company B, another vendor whose identity the FBI shielded, transferred over $1 million to the fraudulent account on November 19, 2020.

 

 

Company A, a vendor health plan provider, deposited $2.8 million into the fake account in two tranches: $1.4 million on November 25, 2020, and the second $1.4 million on December 4, 2020.

 

For impersonating Fairview’s CEO and other business executives on June 20, 2020, Mr Shodiya was facing additional charges of aggravated identity theft asides the wire fraud charges.

 

The duo will forfeit any money and property linked to the proceeds of the fraud to the U.S. government.

 

If the EFCC successfully tracks down Mr Shodiya and Mr Jamiu, they will be extradited to the U.S. to stand trial.

 

 

Peoples Gazette

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GTCO Speaks On False News Report Against Its Business Activities, Results Among Other Allegations 

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Based on the incessant release of false news reports on GTCO’s business activities, Results and its Management Team, it has become necessary to set the records straight and dispel attempts by certain groups to create a false narrative about the GTCO Brand and its Management.

 

The false news articles which are being sponsored using the media, center around baseless allegations against the Group’s business activities and its Executive Management.

 

Being a responsible corporate citizen and a first class institution, GTCO Plc has taken swift and decisive legal actions against the various sources of these false reports, and will continue to use the full extent of the rule of law available to safeguardits reputation.

 

We urge all our Customers, Shareholders and Stakeholders to kindly disregard all the allegations being peddled through various media platforms and handles. All, of our Executive Management team continue to operate in their full capacities as appointed and are not under any financial or regulatory scrutiny as alleged.

 

Thank you for your continued support.

 

 

 

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