The Rivers State High Court sitting in Port Harcourt has reaffirmed an order for the Shell Petroleum Development Company (SPDC) to stop the process of termination of contracts handled by local contracting outfit GSA Logistics services from oil hosting communities in the region.
The claimant had approached the Port Harcourt based high court seeking an interim injunction restraining the SPSC against termination of the GSA logistics services contract after the Ijaw youth council at a press briefing held in Yenagoa last month threatened to shut down the oil operation of the company if the process is followed through.
termination of GSA logistic contract awarded to indigenous contractors in Niger Delta.
According to the Court presided over by Justice I.P.C. Igwe, the SPDC is restrained from calling off the bidding process of the contracts in which local Niger Delta companies entered bids to provide logistics support services for government security agencies in facilities in the region.
The justice also ruled that the claimant shall enter into an understanding in damages to be paid in favour of the defendants for 5 million naira only should the motion on notice and substantive case be found to be frivolous.
In the reaction, the spokesperson for Shell Mr Essien Nelson points out that the review supervised by the NNPC upstream Investment Management Services and the NCDMB was conducted through an open and transparent bidding processing compliance with Nigerian content regulations.
He insists on the company’s commitments to support the
development of local communities and companies pointing out that in 2022, the SPDC JV show Nigeria exploration and production company and Shell Nigeria gas awarded contracts worth 1.9 billion dollars to Nigerian registered companies.
He also emphasises that 56.13 million dollars have been earmarked to be paid in 2023 by the spdcjv for a statutory contribution to host communities development trust which will benefit Nigerian communities in compliance with the petroleum industry Act of 2021.
The court however adjourned the substantive case to the 20th of June this year.
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