Bonny, Rivers State – One of Shell Petroleum Development Company’s (SPDC) host communities in Bonny, Rivers State, has threatened to sue the oil giant for $5 billion in a UK court over its recent asset divestment, which the community claims was done without proper consent.
Chief Se-Alabo Clinton Dan-Jumbo, Head of the Dan-Jumbo House of Bonny Kingdom and a key landlord to SPDC, in a letter addressed to Shell’s CEO, Wael Sawan, condemned the company’s $2.4 billion sale of its onshore assets to Renaissance Africa Energy Holdings, describing it as a clear violation of the long-standing 1958 Bonny Terminal Agreement.
The Dan-Jumbo House, along with the Jumbo Major House, John-Jumbo House, and the Brown House, jointly serve as landlords to Shell’s Bonny Oil and Gas Terminal (BOGT)—a critical facility for storing and exporting Nigeria’s Bonny Light crude.
Chief Dan-Jumbo pointed to Clause 2.3 of the 1958 Bonny Terminal Agreement, which requires the explicit consent of both the Jumbo and Brown Houses before any lease or asset transfer can be executed.
“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?” he queried in the letter.
He accused Shell of breaching this critical agreement and demanded the company halt further action on the sale until proper consultation with host families is held.
Beyond the legal issues, Chief Dan-Jumbo highlighted the severe environmental damage allegedly caused by SPDC over the past six decades.
“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.
He insisted that before Shell completes its exit, it must publicly disclose its environmental liabilities and commit to a full clean-up of the Bonny environment.
To resolve the dispute, the Dan-Jumbo House is demanding an urgent stakeholders’ meeting, involving:
- Shell
- Renaissance Africa Energy
- Jumbo and Brown Houses
- Amanyanabo of Bonny Kingdom
The purpose, he stated, is to renegotiate the original 1958 lease agreement in line with today’s realities and expectations.
“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 added.
Dan-Jumbo warned that if Shell fails to respond within 14 days, legal proceedings would be initiated in the United Kingdom, where Shell’s global headquarters is based.
“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 has been copied to key global bodies including the United Nations, British Parliament, Greenpeace, and the Nigerian government, signaling a potential escalation in the dispute.
As of the time of filing this report, Shell is yet to issue an official response, though Dan-Jumbo confirmed that the letter was received at the company’s UK headquarters.
