Local activists and international environmental groups are calling on Nigeria's government to postpone the approval of the sale of oil company Shell's onshore assets. They argue that Shell is attempting to evade its environmental and social responsibilities in the heavily polluted Niger Delta.
Shell is seeking to sell its subsidiary Shell Petroleum Development Company, which manages its onshore assets in the delta, to Renaissance Africa Energy Company, a consortium of local companies, in a $2.4 billion divestment deal. The company claims this move is part of a broader reconfiguration of Nigeria's oil and gas sector.
The Centre for Research on Multinational Corporations (SOMO), a Dutch non-profit organization, released a report expressing concerns that Shell should not be allowed to divest in the delta without addressing its legacy of pollution and ensuring the safe decommissioning of abandoned oil infrastructure.
Protesters have urged the Nigerian government to halt the sale until environmental issues are resolved. Residents like Lezina Mgbar from the Korokoro Tai community in Ogoniland have highlighted the adverse impacts of oil spills on their daily lives, including difficulties in accessing clean water and poor agricultural yields.
Scientific studies have revealed high levels of chemical compounds and heavy metals in the delta due to oil industry activities. Activists criticize Shell for its history of inadequate divestment practices, citing incidents like the wellhead blowout in the Santa Barbara River in 2021.
Environmental consultant Richard Steiner emphasized the risks associated with transferring assets to local firms without addressing environmental and social concerns. Shell maintains that it evaluates the financial strength and environmental performance of companies it sells assets to.
The final decision on the Shell-Renaissance transaction rests with Nigerian President Bola Tinubu, who serves as the petroleum minister. SOMO's report documents cases where environmental pollution was allegedly not addressed by Shell before previous divestments.
Shell's deal with Renaissance marks its effort to reduce onshore operations in Nigeria and focus on deepwater activities. Civil society groups have petitioned for more responsible divestment practices in the petroleum industry.
Unlike past sales, Shell is transferring all subsidiary shares to Renaissance, ensuring a change of ownership while SPDC continues to bear liabilities. SOMO's director emphasized the importance of addressing historical pollution and ensuring financial transparency for a just energy transition globally.
