Sale of Assets: Ondo Community Asks Court to Jail Shell MD, Three Others over Disobedience of Court Order

Alex Enumah in Abuja

An oil-producing community in Ondo state has commenced proceedings of committal to prison against four officials of Shell Petroleum Development Company (SPDC), over the recent sale of the company’s onshore assets.

Shell had last week announced the sale of its asset worth over $2.4 billion to a consortium of local companies.
The sale however is said to be in violation of the order of Justice T. B. Adegoke of a Federal High Court in Akure, made last September.
 Adegoke had specifically restrained Shell from disposing any of its assets in Nigeria, pending the hearing and determination of a suit brought against it by an indigenous community in Ondo State.

The restraining order issued on September 28, was sequel to an exparte application brought by one Prince Afolabi Akinruntan and 1,215 others against SPDC, SPDC Nigeria Ltd, Shell International Company Ltd, Shell International Exploration and Production Ltd, Attorney General of the Federation AGF and Minister of Justice and the Nigerian National Petroleum Company (NNPC).

 Adegoke had held that it was necessary to grant the restraining order in order “not to make nugatory the essence of this suit”.
However, following the announcement of the onshore assets last week, the community on Wednesday filed the “Form 48” against shell and four of its officials.
The form 48; Notice of Consequence of Disobedience of Court Order was Brought Pursuant to Section 72 Sheriff and Civil Process Act and Order IX Rules 13(1)&(2) Judgment Enforcement Rules.

Those being asked by Justice Adegoke of the Federal High Court, Akure, to be committed to prison include; SPDC’s MD, Osagie Okunbor, Country Legal Counsel, Shell Nigeria/Company Secretary, SPDC, Mrs Keibi Atemie, Head of Corporate Litigation, Shell Africa, SPDC, Ikechukwu Ekwume and Finance Director, SPDC, Jan Van Bunnik.

Part of the application read: “Take notice: That unless you obey the direction(s) contained in the Order of the Federal High Court of Nigeria made on September 28, 2023 by the Honourable Justice T.B Adegoke you will be guilty of contempt of court and will be liable to be committed to prison.”
Recall that the plaintiffs had dragged the defendants before the Federal High Court, Akure Ondo State, over alleged oil spillage caused by Shell in their community in Ondo State.

In the suit marked: FHC/AK/CS/68/2023, the plaintiffs are seeking for the enforcement of their fundamental rights and the remediation of the environmental hazards and degradation caused by the oil spillage of Shell’s ruptured pipelines.
The plaintiffs however, pointed out that Shell has indicated intention to dispose all of its assets in Nigeria as well as quit its business operations in the country.
The plaintiffs pointed out that if the court does not intervene through the grant of the exparte application, “the judgment of the court will be rendered nugatory, academic, and unenforceable, if it is favour of the plaintiffs.

While submitting that an order of mareva is apt in this circumstance, they urged the court to exercise its discretionary powers and grant the reliefs sought.
In a short ruling, Justice Adegoke, pointed out that exparte orders are made in very special circumstances in order not to make nugatory the judgment of a court.
The judge observed that in the extant case before it, the plaintiffs are in court to claim compensation, remediation and rehabilitation of their environment, farmland, fish ponds, engine boat machineries etc destroyed by the oil spillage, rain acid and pollution since 2011 to 2019 and which still continues by the activities of Shell, hence the need to grant the application.