Shell’s BOGT Landlord Threatens $5bn Lawsuit Over ‘Illegal’ Asset Divestment, Environmental Devastation

For allegedly illegally divesting its assets in Bonny, Rivers State, the Bonny Oil and Gas Terminal (BOGT), without the consent of its landlords, Shell Petroleum Development Company (SPDC) has been threatened with a $5 billion lawsuit in the United Kingdom.

In a strongly worded letter to Shell’s Chief Executive Officer, Wael Sawan, one of the landlords to SPDC in Bonny, Rivers State, Se-Alabo Clinton Dan-Jumbo accused the oil giant of closing out the divestment of the BOGT without complying with the provisions of its 1958 lease agreement with its landlords, Jumbo and Brown Chieftaincy Houses of Bonny Kingdom.

He indicated that should the oil giant fail to address its obligations to its landlords, he would seek legal redress in the United Kingdom.

Se-Alabo Clinton Dan-Jumbo, who is the 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 Company Limited.

Checks by Kristina Reports reveal that Jumbo House, which signed the lease agreement alongside Brown House as landlords, and the Amanyanabo of Bonny Kingdom as consentor, comprises the Jumbo Major House, Dan-Jumbo House, and John-Jumbo House.

The controversial divested asset, the Bonny Oil and Gas Terminal (BOGT) warehouses crude oil produced from different parts of the country and through which the Bonny Light crude is exported to off takers across the globe.  

The Dan-Jumbo House Chief argued that Shell’s divestment violated Clause 2.3 of the 1958 Bonny Terminal Agreement, which requires the consent of the Jumbo House and Brown House before any transfer of land leases.

“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 remedy the alleged breach, Se-Alabo Dan-Jumbo demanded that Shell immediately convene a meeting with Renaissance, the landlords, Jumbo and Brown Houses, Amanyanabo of Bonny Kingdom, and the Bonny Chiefs Council to renegotiate the 1958 lease agreement.

He also insisted that Shell publicly outline its environmental liabilities and clean-up plans before its departure.

“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 copied to global institutions and government agencies, including the United Nations, the British Parliament, Greenpeace, and the Nigerian government, signaling an escalation in the dispute.

Shell has yet to publicly respond to the allegations or the enquiry via email by Kristina Reports.