A coalition of civil society organisations has urged the National Assembly to block Shell Petroleum Development Company of Nigeria Limited (SPDC) from selling its onshore oil business in Nigeria to Renaissance Africa Energy Company Limited.
The group also called for the suspension of further divestments by international oil companies (IOCs) operating in the Niger Delta region.
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This appeal was made on Thursday during a press briefing at the House of Representatives Media Centre.
Forty-one organisations signed the statement.
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Speaking for the coalition, the Executive Director of Health of Mother Earth Foundation (HOMEF), Nnimmo Bassey, said the IOCs have existing obligations in the region, and as such, the divestment should be halted.
He stated that many of the companies have caused environmental degradation in the region without providing adequate remediation, adding that the divestment would transfer these responsibilities to other parties.
“To allow Shell, TotalEnergies, or any other company to walk away from their responsibilities would mean transferring these liabilities to the Nigerian state, the Niger Delta states, and the Nigerian people.
“This is an unjust and unsustainable burden that would further exacerbate the challenges faced by communities already suffering from the effects of pollution and environmental neglect,” he said.
The deal
SPDC is expected to receive up to $2.4 billion from the transaction, including an initial sum of $1.3 billion.
A further payment of $1.1 billion, relating to prior receivables and cash balances, is expected upon the deal’s consummation, Shell said in a statement on Tuesday.
Renaissance, the buyer, comprises locally based energy firms, including ND Western, Waltersmith, Aradel Energy, Petrolin, and First E&P.
The deal provides relief for Shell, which has sought to offload the assets since 2021 due to challenges such as sabotage, theft, and spills, some of which have resulted in litigation and environmental liabilities.
Past divestments
The coalition noted that similar divestments in the past have left communities shortchanged.
It said Shell, ENI/AGIP, ExxonMobil and other IOCs have previously conducted similar transactions without addressing the environmental impact of decades of exploration.
“There is Shell’s divestment to Aiteo in Nembe. This divestment has resulted in unresolved pollution, with no comprehensive plan for addressing the environmental damage caused by years of oil extraction. Instead of remediating the pollution, the new operator, Aiteo, has failed to act on the urgent need for cleanup, and the environmental situation has only worsened,” the coalition noted.
READ ALSO: Shell gets approval to sell onshore oil business in Nigeria
It also cited the sale of assets by ENI/AGIP to Oando and others by ExxonMobil.
“ExxonMobil’s sale of assets has led to an inadequate transfer of responsibility for remediation to new operators, who were not equipped to manage the contamination left behind. The result has been prolonged environmental degradation,” it said.
Some activists present at the briefing included the Programme Officer of Social Action, Botti Issac; the Country Representative of Amnesty International, Isa Sanusi; and the Executive Director of Tubali Women Initiative, Hauwa Mustapha.
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