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SPDC’s Host Community Threatens $5bn Lawsuit Over ‘Illegal’ Asset Sale
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9/23/2025, 4:38:55 AM
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By Eniekenemi Atoukudu - 3/23/2025, 7:18:54 AM
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Se-Alabo Dan-Jumbo, a landlord to Shell Petroleum Development Company of Nigeria (SPDC) in Bonny, Rivers State, has accused the oil giant of illegally divesting its assets without the consent of host communities. He has threatened a $5 billion lawsuit in the UK if Shell fails to meet its obligations. In a letter to Shell CEO Wael Sawan, Dan-Jumbo—Chief and Head of the Dan-Jumbo House of Bonny Kingdom—condemned the company’s recent $2.4 billion asset sale to Renaissance Africa Energy Holdings. The Dan-Jumbo Chieftaincy House, along with the Jumbo Major House and John-Jumbo House, forms the Jumbo group of houses, which co-owns the land with the Brown House, all of Bonny Kingdom, leased to SPDC. The disputed asset is Shell’s Bonny Oil and Gas Terminal (BOGT), a key facility for storing and exporting Bonny Light crude worldwide. Dan-Jumbo argued that Shell’s divestment violated Clause 2.3 of the 1958 Bonny Terminal Agreement, which requires the consent of the Jumbo and Brown Houses before any land lease transfer. “It is obvious that you obtained the consent and approval of Nigeria’s oil minister, but did you obtain the consent of the Lessors – Jumbo House and Brown House of Bonny Kingdom before commencing and concluding the sale of your assets?” Dan-Jumbo questioned. He further accused Shell of environmental degradation, stating that over six decades of oil exploration had rendered Bonny’s land and waters uninhabitable. “Over 60 years of oil exploration have polluted our land to a level where we can no longer fish in our rivers or drink water from our wells,” he lamented. To address the alleged breach, Se-Alabo Dan-Jumbo urged Shell to promptly convene a meeting with Renaissance, the landlords (Jumbo and Brown Houses), the Amanyanabo of Bonny Kingdom, and the Bonny Chiefs Council to renegotiate the 1958 lease agreement. He also demanded that Shell publicly disclose its environmental liabilities and present a clear clean-up plan before its exit. “The families did not foresee this sale when they leased the land to you in 1958. I believe that if they did, they may not have leased the land at the price they did,” he stated, adding that any exit plan must include a full environmental remediation strategy. He further warned that failure to comply within 14 days would force the Bonny Kingdom to initiate legal proceedings in the UK, where Shell’s headquarters is located. “Please be assured that we shall not hesitate to commence legal action against your esteemed company here in the United Kingdom. Should this matter go to court, we shall be demanding the sum of $5 billion to cover compensation and clean-up of our land,” he declared. The letter was also sent to global institutions and government agencies, including the United Nations, the British Parliament, Greenpeace, and the Nigerian government, highlighting the intensifying dispute. While Shell has not yet issued a public response, Se-Alabo Dan-Jumbo confirmed that the company acknowledged receipt of the letter at its UK office.
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