Shell Petroleum Development Company of Nigeria Limited (SPDC) says Shell Plc, its parent company, will not progress with the divestment of its interest in SPDC until the outcome of outstanding litigation against the exercise.
SPDC is a Nigerian subsidiary of Shell Plc.
Speaking with ThisDay on Thursday, Igo Weli, country head/director of corporate relations, SPDC, said the company would also not take any action in respect of the review of its portfolio.
Refuting speculations that the company wanted to exit Nigeria, Weli said Nigeria remained central to Shell’s operations.
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He said the company only aimed to continue to grow its deepwater and gas positions under a stable and competitive investment climate.
Weli added that the company would always conduct its businesses and operations in accordance with the laws, including any court orders.
“We respect the Nigerian judiciary and recognise its role in upholding the rule of law, hence, as a firm believer in the rule of law and due process, our actions will always be guided by the law,” he said.
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Asked to comment on the ongoing spill litigation that led to the court order stopping any planned asset sale by Shell in Nigeria, Weli said: “We have a strong belief in the merits of our case, which we are vigorously defending.”
“We have no further comments at this stage other than to say that SPDC is complying with the supreme court’s order to maintain the status quo.”
On March 14, a court of appeal in Owerri stopped Shell from selling any assets in Nigeria until a decision is reached on the company’s appeal suit over the N800 billion ($2 billion) penalties.
The court also ordered Shell to deposit the money in an account controlled by the court within two working days.
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Later in June, the supreme court upholded the freeze order on Shell’s asset sale, ordering it to maintain status quo until the appeal is determined.
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