Resolve dispute over $ 400 million project in one month, Senate told Shell and company
The Senate ordered Shell Petroleum Development Company to end its ongoing litigation with Global Gas and Refining Limited and to reach an out-of-court settlement on the dispute over the gas project involving the two companies.
The chairman of the Senate Ethics, Privileges and Public Petitions Committee, Senator Ayo Akinyelure, revealed the developments in an interview with our correspondent after his committee met with representatives of the two cabinets.
The head of Global Gas and Refining Limited, Kenneth Yellowe, had filed a petition against the management of Shell Petroleum Development Company in the Senate over a $ 400 million gas project contract that was allegedly not honored by the government. SPDC.
Akinyelure had filed the petition in front of the Red Chamber, on behalf of the President of the Senate, Wednesday, October 13.
Yellowe alleged in the petition that the SPDC leadership failed to honor its part of a binding gas supply agreement it signed with its company in March 1998.
He said in the petition that the breach of the agreement endangered Global Gas and Refining Limited’s more than $ 400 million funds obtained from international financial institutions and individual investors because of the hurtful decisions made. by SDPC.
He therefore requested that the Senate consider the matter with a view to a mutually beneficial settlement and resolution.
Speaking to our correspondent after hearing from both sides, Akinyelure urged the SPDC to adopt an out-of-court settlement that his panel had suggested.
He said: âThe committee had come to a unanimous decision that both parties should settle amicably.
âI have read the terms of the agreement. Industry operators and the Federation’s Attorney General have suggested that the two sides should reach an amicable resolution to the issue at hand.
“This is because Nigeria should be favorable to investments in order to develop the economy for the benefit of the citizens.”
Akinyelure therefore mandated Shell to resolve the issue with Global Gas and Refining Limited and report its resolution to the committee within a month.
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