Environmentalists Campaign for Postponement of Shell’s Multi-Billion Dollar Asset Sale in Niger Delta – Sky Bulletin
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In a bid to prevent potential environmental negligence, activists within Nigeria and several global ecological advocacy organizations are pressing for the Nigerian government to put off approving Shell Oil Company’s disposal of its onshore holdings. Their contention stems from allegations that Shell is attempting to evade its duties towards the environment and societal welfare in the Niger Delta, a region notorious for its severe pollution.
Shell’s subsidiary, Shell Petroleum Development Company, which oversees the company’s onshore operations in the delta, is poised to be sold to Renaissance Africa Energy Company, a group of indigenous firms. Shell articulates that the $2.4 billion disinvestment transaction aligns with the Nigerian oil and gas sector’s broader restructuring strategy.
However, the Centre for Research on Multinational Corporations (SOMO), a Netherlands-based NGO, issued a report on Wednesday, asserting that Shell’s departure from the delta should not be sanctioned unless it takes full “responsibility for its toxic legacy of pollution and guarantees the secure decommissioning of its forsaken oil infrastructure.”
A chorus of protest has risen, with demonstrators urging Nigeria, the leading African oil producer, to freeze the asset sale until the environmental distresses are comprehensively dealt with. Amongst the protestors, healthcare worker and farmer Lezina Mgbar described the debilitating impact of oil spills on her community in Ogoniland’s Korokoro Tai. Demand is high that Shell remediate their land and cleanse their water prior to divesting.
Evidence from scientific inquiries indicates the prevalence of hydrocarbon-based chemical compounds and toxic metals in the delta’s environment, impacting the livelihoods of communities tethered to an ecosystem marred by oil industry activities.
Activist groups single out Shell’s historical trend of haphazard divestment, including the December 2021 incident where a Shell wellhead in the Santa Barbara River malfunctioned, leaking crude and methane gas unchecked for over a month, which wreaked havoc on the local ecology and community.
Expert environmental consultant Richard Steiner emphasizes the potential dangers of shifting ownership to local enterprises that may lack the capability to safety manage these oil and gas operations without addressing the preexisting environmental and societal issues.
Shell defends its divestment process, claiming comprehensive evaluations of prospective buyers’ financial solidity, values, and commitment to social and environmental practices. Additionally, Shell alludes to the federal submissions protocol, assuring that the government’s scrutiny and conditions are met before any divestment.
The decision regarding the fate of the Shell-Renaissance deal rests with Nigerian President and Petroleum Minister Bola Tinubu. His office, up to this point, has not voiced any official stance on the matter when queried.
The SOMO report details additional unresolved environmental pollution cases in Shell’s history, further fueling the contention by local communities like Ogale and Bille, demanding rectification before any business transition occurs.
While oil extractions by Shell and other majors are frequently disrupted by third-party activities, such as militant aggression and theft, Nigerian law dictates that these companies are still responsible for cleanup.
As Shell moves towards concentrating on offshore projects, other majors like Chevron, ExxonMobil, and TotalEnergies mirror this trend but don’t face the same magnitude of resistance that Shell does, indicating its prominent presence in the region. Protesters and a coalition of civil society groups are petitioning President Tinubu to enact principles to ensure future petroleum divestments are managed responsibly.
The collective demands include transparent processes, community involvement, and addressing pollution and outdated infrastructure in an accountable manner shared by Florence Kayemba of the Niger Delta-focused Stakeholder Democracy Network.
While Shell’s divestment to Renaissance implies a direct transfer of subsidiary shares, enabling SPDC to bear any spill-related liabilities, this has not quelled concerns from groups like SOMO. These advocates demand comprehensive accountability from Shell for historical pollutions.
Audrey Gaughran, SOMO’s director, stresses the importance of addressing historical pollutions, decommissioning safety and fiscal transparency in Nigeria as benchmarks for a globally just energy transition.
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The divestment of onshore assets by Shell in the Niger Delta has sparked intense scrutiny and appeals from environmental activists and local communities deeply impacted by historical oil pollution. While Shell advocates for a smooth transition of its subsidiary to local ownership, the consensus among critics is that comprehensive measures must be ensured to address the ecological and societal aftermath of oil operations. The debate over Shell’s responsibility in the Niger Delta illustrates a critical challenge amid the energy transition: balancing economic and corporate maneuvers with the imperative of environmental stewardship and social equity.
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