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Shell PLC (NYSE:SHEL) is reportedly facing claims from Nigerian communities for 505 billion naira ($310 million) in damages.
The communities are alleging that the company violated a court order by agreeing to sell its onshore assets in the Niger Delta, reported Reuters.
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However, over 1,200 representatives from Ilaje communities in the Niger Delta have petitioned the Federal High Court in Abuja to halt the deal, arguing that Shell is violating a December 2023 ruling that suspended any asset sales until a compensation lawsuit is resolved.
The community has a pending lawsuit against Shell, accusing the company of causing an oil spill that damaged waterways and farms.
In January 2024, the company agreed to sell its Nigerian onshore subsidiary, The Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium of five companies.
The consideration payable to Shell as part of the transaction is $1.3 billion, and the buyer will make additional cash payments of up to $1.1 billion, mainly related to prior receivables and cash balances in the business.
In the court papers, the community said Shell should be penalised for going ahead with asset sale “when the plaintiffs and the host of their community members have remained in perpetual suffering over the failure of the defendants to obey the preservative orders of a competent court.”
Investors can gain exposure to Shell via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (NYSE:EIPX) and VanEck Natural Resources ETF (NYSE:HAP).
Price Action: SHEL shares are up 0.87% at $67.56 premarket at the last check Friday.
Photo courtesy: Shutterstock
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
