Nigeria Supreme Court lets Global Gas raise new constitutional arguments in Shell gas dispute appeal
The Supreme Court granted Global Gas and Refining Limited permission to amend its appeal against Shell Petroleum Development Company, allowing the company to raise new constitutional arguments based on the court's inherent jurisdiction under Section 6(6)(a) of Nigeria's 1999 Constitution. The May 22, 2026 ruling by Justice Inyang Okoro's panel rejected Shell's objections that the changes would alter the appeal's nature, finding the amendments were made in good faith to achieve comprehensive resolution of the over-decade-old gas supply dispute.
This development revives Global Gas' challenge to Shell's historical gas supply obligations under their 2002 Gas Processing Agreement, which could potentially impact the validity of Shell's March 2025 sale of its 30% stake in SPDC to Renaissance Consortium for $1.3 billion. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had previously questioned Renaissance's qualifications but ultimately approved the divestment following federal government clearance.
Global Gas, led by newly appointed counsel Kanu Agabi SAN, seeks to finally resolve the wet gas supply dispute that has persisted since arbitral proceedings began. The court emphasized that interest of justice requires hearing all relevant issues in such long-running cases, particularly where lower courts failed to address fundamental arbitration concerns stemming from tribunal president Oba Nsugbe's undisclosed prior involvement with Shell.
Will this new constitutional argument strengthen Global Gas' position in its long-running dispute with Shell, potentially affecting confidence in Nigeria's oil sector divestments or prompting renegotiation of historical gas agreements?