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Environmental groups want Nigeria’s government to delay approving the sale of oil company Shell’s onshore assets. They allege Shell is trying to shirk its environmental and social responsibilities in the highly polluted Niger Delta, which Shell refutes
Environmental groups want Nigeria’s government to delay approving the sale of oil company Shell’s onshore assets. They allege Shell is trying to shirk its environmental and social responsibilities in the highly polluted Niger Delta, which Shell refutes.
The London-based company is trying to sell its subsidiary Shell Petroleum Development Company, which operates its onshore assets in the delta to Renaissance Africa Energy Company, a consortium of local companies. Shell says the USD 2.4 billion divestment deal is part of a wider reconfiguration of the Nigerian oil and gas sector.
The Centre for Research on Multinational Corporations (SOMO), a Dutch non-profit organization, released a report recently saying Shell shouldn’t be allowed to divest in the delta unless it takes responsibility for its toxic legacy of pollution. It also asked the oil major to ensure the safe decommissioning of abandoned oil infrastructure.
Protesters have appealed to the government of Nigeria to halt the sale until environmental concerns are addressed. Scientific studies have found high levels of chemical compounds from crude oil, as well as heavy metals, in the delta. Experts say that it can drive Nigeria’s economy and at the same time, leave communities’ water sources slick with contaminants.
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Shell says it assesses the financial strength, culture and social and environmental performance records of companies it sells assets to other parties. It claims that the said deal also met with such stringent conditions. Nigerian President Bola Tinubu, who holds the portfolio of petroleum minister, will ultimately decide the fate of the Shell-Renaissance transaction.
