A Nigerian oil firm has mounted legal action against Shell, according to a news report.
Reuters says that Neconde is to take the energy giant to the court of arbitration in the UK.
It surrounds accusations that the oil major continued to lift crude and did not remit funds until after a lease had been sold.
Neconde CEO Frank Edozie told Reuters that the company bought a stake in the OML 42 oil license from Shell in April of 2011.
He alleges Shell continued to produce crude there until the petroleum ministry approved Neconde’s license in November that year.
Arbitration disputes can last several years to resolve but may be withdrawn quickly if a deal is reached.
Mr Edozie told the news agency: “It was producing and lifting crude although the asset had, by deed of transfer, moved to Neconde. Shell lifted the crude and held the proceeds – nothing was given to Neconde. That is the matter we are taking to the court of arbitration in the UK.”
Shell confirmed there was “arbitration between Neconde and Shell”.
OML 42 is located in the country’s Niger Delta, considered the country’s most prolific basin.