A Niger Delta group, Forum Against Niger Delta Exploitation (FANDE), has described the plan by Shell to sell its onshore assets in Nigeria and Niger Delta to renaissance consortium as disturbing.
Shell on its official website announced that the assets are valued at $2.8billion and are to be sold to renaissance, a consortium of four Nigerian firms and one foreign company, namely ND Western, Aradel Energy, First E&P, Waltersmith and Petrolin.
The group led by a renowned militant leader, Henry Okah, like other groups in the region, has rejected the proposal and urged Shell to drop the plan and consider divesting the investments to indigenous oil firms owned by Niger Delta indigenes, in the interest of peace and return in investment.
The group, in a statement yesterday in Port Harcourt, Rivers State capital, signed by its spokesman, General Gboloko, threatened fire and brimstone to oil installations in the region, owners and families members of the consortium among others, if Shell insists on carrying on with the proposal.
They noted that they had been silent on happenings in the region for long because of the current incarceration of their supreme leader Okah, but explained that they had his mandate to speak and “act on this issue.”
They said they wanted Shell to sell the assets to indigenous oil firms owned by indigenes of the region, who had the interests of the region at heart.
FANDE said the Anglo Dutch multinational should give first right of refusal to the group’s preferred companies, adding that if they insisted on renaissance consortium, they should consider that as bad investment.
The people recalled decades of neglect and environmental degradation the region had suffered under Shell, noting that if allowed to hand over the business to the planned consortium, it would be tantamount to handing over template of continuous marginalisation, neglect and suffering for the region and her people.
They vowed to resist the decision with the last blood of their lives.
The people regretted that Shell was yet to learn a lesson from the nasty experience they had with people from OML-25 in Kula Kingdom, Asari-Toru Local Government of Rivers Stste where their facility was occupied by women for attempting to sell the assets to a different company from the community preferred firm.
Coalition of Civil Society Organisations (CSOs) has called on President Bola Tinubu to suspend Shell’s divestment until there is a thorough review that addresses the environmental and social legacies of Shell’s operations in the Niger Delta.
The Executive Director, Civil Society Legislative Advocacy Centre (CISLAC), Auwal Musa Rafsanjani, made the demand yesterday during a news conference in Abuja.
Rafsanjani noted that the proposed divestment should be treated with urgency.
According to him, this divestment, which involves the transfer of Shell’s stakes to the Renaissance consortium, presents us with a critical moment that could shape the future of the Niger Delta and its people for generations to come.
He said: “The Niger Delta, as many of you are aware, has borne the brunt of environmental degradation and social injustices for decades, a direct consequence of the oil exploration and production activities in the region. The planned divestment by Shell, without a comprehensive resolution of these long-standing issues, poses an unacceptable risk to the region’s ecological integrity and the well-being of its communities.
“In response to this critical situation, our coalition, representing a broad spectrum of civil society organizations and community leaders, has submitted a joint petition to President Bola Tinubu. This petition, endorsed by over a thousand signatories, calls for an immediate halt to Shell’s divestment plans until a transparent, inclusive, and just review process is undertaken.
“Our demands are clear and grounded in the principles of justice, sustainability, and community welfare:Immediate Suspension of the Divestment Process: We insist on pausing Shell’s divestment until there is a thorough review that addresses the environmental and social legacies of Shell’s operations in the Niger Delta.
“Accountability and Transparency: Shell must be held accountable for its historical environmental and social impacts in the region. We demand a clear and transparent process that ensures accountability and remediation before any transfer of ownership.
“Strengthened Regulatory Framework: We call upon the Nigerian government to enforce robust regulatory measures to protect the rights and interests of the Niger Delta communities during and after this divestment process.
“Community-Centric Approach: The voices and concerns of the impacted communities must be at the forefront of the divestment process. We advocate for fair compensation, meaningful engagement, and concrete commitments to remediation.
“Environmental Restoration Fund: We propose the establishment of a fund, contributed to by Shell, dedicated to the environmental restoration and sustainable development of the Niger Delta, managed transparently and with active community involvement.”
He pointed out that there is need for the adoption of comprehensive principles to guide the divestment process.
“National Principles for Responsible Divestment: We urge the adoption of comprehensive principles to guide the divestment process, ensuring it adheres to the highest standards of transparency, inclusivity, and accountability.
“Our gathering here today is not merely a formality; it is a resolute call to action. The stakes are high, and the implications of Shell’s divestment extend far beyond the immediate transaction. It is about securing a sustainable, just, and equitable future for the Niger Delta—a future where the environment is restored, communities are compensated, and social injustices are addressed.
“We stand united in our commitment to the Niger Delta, and we will continue our advocacy until our demands are met and the region witnesses the dawn of a new era of environmental restoration and social justice,” he said.
The coalition of civil society leaders, brought together by the concerted efforts of Social Action Nigeria, CISLAC, the Africa Centre for Media and Information Literacy (AFRICMIL), Stakeholder Democracy Network, Civil Rights Council (CRC), Praxis Academy, Transparency International Nigeria, Transition Monitoring Group (TMG), policy alert and several other Nigerian and international organisations.
The Managing Director, Shell Nigeria Exploration and Production Company Limited (SNEPCo,) Elohor Aiboni, said the company is working to extend the life of the Bonga Floating, Production, Storage, Offloading (FPSO) vessel for another 15 years.
She said the planned extension will enable the Bonga FPSO to handle more produc.tion from Nigeria’s first deep-water development which came on stream in November 2005.
The Bonga Main Life Extension Project comes as the company explores opportunities in deep-water, gas and renewables in Nigeria where it pioneered oil and gas production more than 60 years ago.
Aiboni, who spoke in Lagos at a panel discussion at the ongoing 8th Sub-Saharan Africa International Petroleum, Exhibition and Conference (SAIPEC) organised by the Petroleum Technology Association of Nigeria (PETAN), said Shell is committed to developing its robust portfolio in Nigeria.
“We are maturing numerous projects planned to come on stream in the short, medium, and long terms with the right fiscal and regulatory framework.”
She said Bonga produced one billion barrels of oil last year and SNEPCo has stepped up efforts for additional volumes from existing assets with more to come on stream in 2024 and beyond.
The SNEPCo boss said other opportunities in deep water include the Bonga North as well as Bonga South-West and Nnwa Doro projects on which SNEPCo is collaborating with the Nigerian government and partners to implement.
She noted that Shell is also expanding its gas portfolio with both SNEPCo and Shell Petroleum Development Company of Nigeria Ltd (SPDC) maturing several projects to deliver gas from their onshore and deep-water assets.
For its part, Shell Nigeria Gas is currently serving more than 130 industrial and commercial customers and looks to expand its gas distribution network to deliver over 1,000MW equivalent of energy to industrial parks and manufacturing companies in Nigeria. She said: “Off-grid solutions are the quickest way to improve energy access in remote communities, so our investments in this area will provide millions of Nigerians access to reliable and sustainable electricity.” According to her, “Shell Nigeria is driving uptake in renewable energy through two companies — All On and Daystar Power Solutions. All On has facilitated more than 80,000 off-grid connections in the 36 states in Nigeria including the federal capital territory, with nearly 200 underserved communities and 560 new businesses powered with clean energy; Daystar plans to increase its installed solar capacity to 400MW by 2025 to become one of Africa’s leading providers of solar power solutions for commercial and industrial businesses.”
She added “Over the years, Shell has proved to be a reliable partner in the development of Nigeria through our range of business and mainly the energy we produce. We will continue to look for innovative ways to help reduce cost and drive efficiency in our business. We want to remain highly competitive and relevant in the oil and gas business and still stand tall in spite all the challenges.”
Shell PLC has denied speculations that it was leaving Nigeria after selling its onshore business in the Niger Delta.
Contrary to claims making waves on social media, Shell, an international energy and petrochemical company, is selling its onshore business in Nigeria but not leaving the country.
In a meeting with the Managing Director and Chief Executive Officer of the Oil and Gas Free Zones Authority (OGFZA), Alh Bamanga Jada, the Shell management team said it intended “to remain a long-term partner of Nigeria, supporting the country’s growing energy needs and export ambitions in areas that are aligned with our strategy.”
Jada received the delegation from Shell Nigeria Gas (SNG) and Shell Energy Nigeria on a courtesy call on Thursday, 8th February, at the authority’s office in Maitama, Abuja.
The Managing Director of Shell Nigeria Gas, Mr. Ralph Gbobo stated in the meeting that SNG’s main business is downstream gas distribution to industries in Nigeria with a presence across the nation at Otta, Aba and Port Harcourt and currently penetrating Bayelsa state.
He also stated that there is an ongoing effort to collaborate with the government of Oyo state. He further disclosed that SNG currently distributes about 60-70 million scuffs daily, hinting to the OGFZA boss and management that SNG is now diversifying into offshore activities and gas distribution.
While announcing the changes in its Nigerian business structure, the company said, subject to following regulatory approvals, it would sell Shell Petroleum Development Company of Nigeria Limited (SPDC).
The onshore business is to be acquired by Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group. The companies are ND Western, Aradel Energy, First Exploration and Production (First E&P), Waltersmith, and Petrolin.
The SPDC is the operator of the NNPC/SPDC/Total Energies/NAOC joint venture, which comprises Nigerian National Petroleum Company Limited (55 per cent holding), SPDC (30 per cent), Total Energies (10 per cent), and the Nigerian Agip Oil Company Limited (5 per cent).
The delegation, however, made a case for the removal of bottlenecks for accessibility to enable them to carry out their enumeration exercise in the Onne/Ikpokiri Oil and Gas Free Zone in Rivers State.
Responding to the delegation, the OGFZA boss assured them of the authority’s readiness for collaboration, stating that OGFZA is responsible for promoting, securing and sustaining investments in the nation’s oil and gas-free zones.
He urged them to explore other gas hubs in the Oil and Gas Free Zones such as Liberty Oil and Gas Free Zone in Akwa Ibom State and Orashi Energy City in Imo state which has recently been declared a free zone under the regulation of OGFZA by President Bola Ahmed Tinubu.
He said the newly declared free zone is the largest in Nigeria with a land mass of over 140,000 hectares and a huge gas deposit.
He further disclosed that Orashi Energy City has the potential to attract over US$8b of Foreign Direct Investment. Jada then assured the visiting delegation of the authority’s commitment to remove all bottlenecks that might cause a hindrance to ease of doing business in the zones, adding that the Authority would continue to provide a conducive environment for investors operating in the zones.
Jada applauded SNG for their interest in committing more resources and investments into Nigeria and their confidence to partner with OGFZA.
He clarified the notion that investors are exiting Nigeria to neighbouring countries, affirming that investors are not leaving Nigeria but rather diversifying and making new investments into more environmentally friendly energy sources, stating that gas is very critical to national development.
The OGFZA helmsman on behalf of President Bola Ahmed Tinubu and the Honourable Minister of Industry Trade and Investment, Dr. Doris Uzoka-Anite, assured the investors of the protection and security of their investments in Nigeria.
Meanwhile, in a bid to ensure additional investment in the oil and gas sector thereby driving the ‘Renewed Hope mandate’ to expand investment and also create jobs to help ease the unemployed population in Nigeria, Jada through his agency has secured a massive investment in the energy, Oil and gas sector with the introduction of APM Terminals Global who is currently constructing a $112 million state-of-the-art facility with an addition of $500 million over the next four years to boost operational efficiency and drive standard delivery in capacity and also create over 1.8million direct and indirect jobs.
This was made known at a meeting hosted by the Honourable Minister of the Federal Ministry of Industry, Trade, and Investment; Dr Doris Uzoka-Anite, on Thursday, 8 February, at the Bank of Industry head office in Abuja.
Also in attendance was Mr Olasupo Olusi, the Managing Director of the Bank of Industry; Emmanuel Nwagwu, COO of Nesgas; Frederik Klinke, COO of APM Terminals Nigeria; Keith Svendson, CEO of APM Terminals Global; Bamanga Usman Jada, MD/CEO of the Oil & Gas Free Zone Authority and a host of others.
APM Terminals Global further pledged its commitment to breathe fresh life into the oil and gas sector in support of the industrialization quest of Nigeria and also to boost local production of Oil and gas to attract Foreign Direct Investment FDI and save forex.
While addressing the meeting, Bamanga disclosed that investments and job creation in Nigeria’s oil and gas industry is something of high interest and it will also drive employment for 900,000 skilled and unskilled workers.
He disclosed: “The Special Economic Zones have become magnets for Foreign Direct Investment FDI, thanks to Mr President’s unwavering support for enhancing productivity and building a resilient and sustainable economy.”
He further stated that other massive investments are ongoing in the oil and gas sector with the addition and construction of a 50,000 metric ton storage facility by Nesgas LPG which will be a game changer in both domestic and international LPG markets.
He said: “The construction of this facility is projected to create over 100,000 direct employments and help launch 500,000 enterprises. This venture underscores the untapped opportunities across Nigeria and Africa and positions Nigeria as a key player in the global gas supply chain.”
Dr Uzoka-Anite also applauded and welcomed their unwavering dedication to the massive growth by injecting life and hope into the Nigerian economy as she said it’s a clear demonstration of sharing the same vision to ensure more investors see Nigeria as a destination for investment with massive Return on Investment ROI due to the large population and enormous availability of natural resources in commercial quantity.
She also disclosed her readiness and that of the government to assist when the need arises.
She noted: “Our administration is committed to making doing business seamless. With our policies thereby expunging all bottlenecks, I am more than sure that in the next few months, the surge in investment in Nigeria will be on the rise. We are committed to making the ease of doing business work in Nigeria.”
Speaking on behalf of Alternative Petroleum Power Limited (APPL), Mr Emmanuel Nwagwu harped on the value of green energy. He spoke about the achievements of APPL, which is expected to export 520 metric tons of green and blue hydrogen and generate 300,000 jobs directly and indirectly.
Mr Keith Svendson disclosed that the nearly $100 million in investments that APM Terminals has made in the port infrastructure of Nigeria will assist towards sustainable energy solutions which will tap into Nigeria’s enormous natural gas reserves.
He also stressed the need for the government to ensure a total overhauling and upgrade of Apapa Ports as it would enhance commercial and economic growth thereby attracting additional investment into the country.
The hopes of crude oil refining at the Port Harcourt refinery received a boost yesterday as Shell announced it has resumed supply of crude oil from its Bonny export terminal to the Port Harcourt refinery. The facility is expected to start operations in the first quarter of this year.
The dual-unit plant, which is undergoing a revamp and almost set for a restart, will begin by processing 60,000 barrels per day (bpd) of oil, before ramping up to its full capacity of 210,000 bpd later in the year.
“A total of 475,000 barrels of oil was delivered to the Port Harcourt refinery on January 18,” Shell’s Bonny oil terminal manager, Osita Nnajiofor said in a statement yesterday.
“Future supplies from Bonny oil and gas terminal would be guided by the demand for the product,” he said.
The Nigerian National Petroleum Company Limited (NNPCL), last month tendered for operators for its Port Harcourt refinery in Rivers State.
The NNPCL at the turn of the year said it planned to complete test runs at the refinery by the end of January in a major step towards resuming operations five years after the plant was shut down.
Port Harcourt is one of four state-owned refineries that have been mothballed for years, but which the government is trying to revive to end the country’s reliance on fuel import.
• Measures underway to reduce domestic gas price, says minister
Rising from stakeholders’ consultative meeting in Abuja involving international oil companies (IOCs), oil marketers, gas producers, among others, yesterday the Shell Petroleum Development Company of Nigeria, Managing Director, Mr. Osagie Okunbor, urged the Federal Government to settle the $1.3billion debt owed gas producers.
Speaking with reporters on the sidelines of the meeting, he lamented the impact of the debt on their business.
There has been a reduction in electricity generation in recent weeks owing to gas constraint.
Okunbor however said, due to the huge debt overhang, no businessman would want to commit additional funds into the country’s gas initiative.
He said: “At the last count we are owed about $1.3billion for gas that has been produced and sold in the past. If you are owed that kind of money across board, you can imagine the impact. I work for Shell and my colleague here with me works for Chevron, and I think between us we are owed probably the largest share of this.
“So it doesn’t create the environment for you to want to put in more and it is a key issue for the Decade of Gas discussions that we are having. How do we crack this problem so that you incentivise people to make investments.
“How do we build the infrastructure? You heard the minister talk about key infrastructural projects that are under construction such as the AKK (Ajaokuta-Kaduna-Kano pipeline project) and others.”
Meanwhile, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the Federal Government is implementing measures that will reduce the price of Liquefied Petroleum Gas, otherwise called cooking gas.
According to Ekpo, the Federal Government had decided to focus on three priority areas to ensure sustainable development in the country’s gas sector.
He said: “We will intensify efforts to increase upstream gas production, to bridge the significant gas supply gaps which continue to hamper our strategic economic sectors (gas to power and gas-based industries, as well as gas for export).
“It is imperative that we work together to unlock more resources to provide gas for power, gas-based industries, LNG export, and domestic use, fostering economic growth, ensuring energy security and eradicating poverty, which is a cardinal objective of President Bola Tinubu’s Renewed Hope Agenda.
“We will prioritise the domestication and penetration of LPG and implement measures to significantly reduce the price of cooking gas for our people, ensuring it becomes more accessible, available, and affordable for our citizens.”
Ekpo further stated that “we are dedicated to the completion of major gas midstream infrastructure and projects, including the AKK Gas Pipeline Project, the OB3 Gas Pipeline Project, and the ANOH Project, as well as enabling flagship projects like the Brass Methanol Project, to enhance the efficiency and capacity of our gas sector.”
He described Nigeria as one of the leading gas-rich countries in the world but had yet to unlocked the full potential of this valuable resource.
“This underperformance can be attributed to issues such as gas flaring, inadequate infrastructure, pricing concerns, policy and regulatory gaps, limited funding, environmental concerns, the growing urgency for a smooth energy transition as well as a lack of comprehensive gas development blueprint.
“It is my belief that by acknowledging these realities, we can proffer solutions. I am confident that the discussions and deliberations over the course of this engagement will not only lead to developing a comprehensive roadmap but will also strengthen the bonds between the public and private sectors.
“Together, we shall overcome challenges, unlock opportunities, and build a gas sector that stands the test of time and provides our nation the platform to be the regional industrial hub and powerhouse it is meant to be,” Ekpo stated.
Heads of stakeholders bodies that were at the meeting and made presentations included; Oil Producers Trade Section (OPTS), Independent Petroleum Producers Group (IPPG), Nigerian Gas Association (NGA), Nigeria Liquified Petroleum Gas Association (NLPGA), Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM), Liquefied Petroleum Gas Retailers (LPGAR), Independent Petroleum Marketers Association of Nigeria (IPMAN) and Association of Local Distributors of Gas (ALDG) among others.
Oil and gas giant Shell has reported lower annual profits due to energy prices falling last year.
Profits were $28.2billion (£22.3billion) in 2023, down from $39.9billion in 2022 which was the company’s highest earnings in its 115-year history.
Energy firms made record earnings when oil and gas prices soared in the aftermath of Russia’s invasion of Ukraine amid fears of supply problems.
Households’ bills have eased since 2022, but remain at a high level.
The price of gas and electricity, as well as petrol and diesel, first began to climb after the end of COVID lockdowns, but surged in March 2022 after the outbreak of war in Ukraine due to concerns over supplies.
The price of Brent crude oil reached nearly $128 a barrel following the invasion, but has since fallen back and is currently at about $80. Gas prices also spiked but have come down from their highs.
The 2022 surge in prices led to all energy companies, including the likes of Shell and BP, to make bumper profits. In response, the government introduced a windfall tax – called the Energy Profits Levy – on the “extraordinary” earnings of firms on their UK operations to help fund a scheme to subsidise gas and electricity bills.
Shell confirmed it paid £178million in UK windfall tax for 2022. A company spokeswoman said the company paid £1.1billion in overall tax in the UK for 2023, of which £240million was taxed under the Energy Profits Levy.
Meanwhile, Shell said it returned $23billion to its shareholders in 2023, and was now increasing its dividend by four per cent and beginning a $3.5billion share buyback programme over the next three months.
Shell said the fall in profit last year was a result of lower oil and gas prices as well as lower volumes being traded and lower margins for refining, which is the process when crude oil, the raw material extracted from the earth, is made into products such as diesel.
It added 2023 saw higher liquefied natural gas (LNG) trading. Many European countries turned to LNG as an alternative source of energy after Russia cut its supplies of natural gas to continent.
As a result, the British company posted profits of $7.3billion in the final three months of 2023, which exceeded analysts’ expectations but was down from a record $9.8billion in the same period the year before.
Jamie Maddock, energy analyst at wealth management business Quilter Cheviot, said Shell’s strong results were driven by its gas division.
He warned that oil and gas prices were likely to remain “unpredictable” in 2024 with geopolitical tensions remaining high in the Middle East.
“It is these sorts of environments that energy giants can thrive in, as we saw in 2022, so it wouldn’t be a shock to see Shell continuing to deliver over the course of the year,” he added.
Jonathan Noronha-Gant, senior campaigner at Global Witness, Senior Campaigner, accused Shell of “choosing climate-wrecking U-turns and shareholder pay-outs” as a result of its strong profits, rather than “investing in clean energy”.
Shell’s Chief Executive, Wael Sawan, said the company this year would continue to “simplify our organisation with a focus on delivering more value with less-emissions”.
Ijaw women from oil and gas bearing communities in the five Niger Delta states have promised to resist moves by Shell Petroleum Development Company (SPDC) Nigeria Ltd to sell any of the assets domiciled in their territories without giving them right of refusal.
Shell recently announced plans to sell their onshore oil and gas assets in the Niger Delta to Renaissance African Energy, a consortium of five companies comprising four exploration and production companies based in Nigeria and International Energy Group.
The women, during a chat with reporters in Port Harcourt, Rivers State capital, yesterday, said Niger Delta environments and their inhabitants had in the last 70 years suffered degradation, hunger, sickness, death, among others, following negative impacts from oil and gas activities, hence they would not accept the divestment of resources in their domain to another firm without giving them the opportunity first.
“We call on the consortium and other oil and gas interests to note that in buying any of these assets, they are buying the agitation and resistance of our people.
“The people in whose communities, creeks, swamps, mangroves and waters these assets are domiciled, must have right of refusal. Our desire to participate and to be included in the options of purchase and ownership is critical to the assertion of our rights and we will not be ignored.
“Ijaw people are peaceful, accommodating and reasonable. We have never been defeated people and we will defend our rights,” they said.
The mothers spoke under the aegis of Coalition of Ijaw Women Voices (CIWV).
In their eight-point resolution after a meeting in Port Harcourt yesterday, the women called on the Federal Government led by President Bola Ahmed Tinubu, National Assembly members from Ijaw ethnic nationality and Niger Delta to be aware of the plans by Shell and rise up against them in the interest of peace and tranquility in the region.
According to the group, Itsekiri investors should be given the right of first refusal in the sale of the onshore assets considering the environmental hazards suffered by their indigenes in the oil and gas explorations in the region.
In a statement signed by the group’s National Chairman, Mr.Mone Oris; South-South Zonal Secretary, Mr. Majemite Bawo Mode and Women Leader, Mrs. Ofe Eyemami Rose, the group maintained that the 2Federal and the Delta State Governments must ensure that stakeholders and investors from oil bearing communities be granted the opportunity to purchase the assets.
It, however, accused Shell Nigeria of planning to sell the assets to local companies to evade their responsibilities of cleaning the environment that have been polluted and destroyed by oil and gas activities.
They warned prospective investors to consider the liabilities incurred by SPDC before buying the assets, stressing that any efforts to sideline Itsekiri stakeholders, who bear the brunt of oil exploration, would be resisted.
Corporate Accountability and Public Participation Africa (CAPPA) has called on the Federal Government to prevent Shell Petroleum Development Company of Nigeria Limited (SPDC) from selling its onshore oil business without first remediating and addressing its historical environmental damages in Nigeria.
CAPPA in a statement signed by its Media and Communication Officer, Robert Egbe, made this known yesterday in reaction to the news of Shell’s decision to sell its Nigerian onshore assets to a consortium of local companies for over $1.3billion.
The organisation noted that Shell has been trying to offload its troubled onshore oil assets since 2021 and permitting it to do so would allow it to escape alleged liability for its oil spills and other environmental liabilities that have destroyed communities in the Niger Delta, some of which have sparked litigations.
It argued that the company’s sudden claim that maintenance upsurge, incessant theft and increasing lawsuits were affecting its operation after years of alleged reckless exploration and disregard for the visible plight of host communities spurred more suspicion and anger rather than sympathy.
CAPPA further recalled that Shell was one of the pioneer oil companies that have significantly altered the ecological landscape of the Niger Delta part of Nigeria since the 1930s, even before Nigeria got independence. It also sadly observed that Shell has benefited hugely from the ineptitude of state authorities and loopholes in the country’s environmental governance and policy framework.
“The exit plan of Shell must be firmly opposed in the interest of the communities that have gained nothing and lost everything from its operations over the years. At a time when historical damages, such as those committed by Shell, are increasingly being recognized and accountability demanded, it is not only important for the government to compel Shell to take responsibility for its actions but also for well-meaning Nigerians to resist the move by local entities to inherit environmental liabilities they cannot manage,” said Akinbode Oluwafemi, the Executive Director, Corporate Accountability and Public Participation Africa (CAPPA).
Similarly, CAPPA’s Programme Manager Ogunlade Olamide noted that “The people of the Niger Delta are not prepared to add toxic legacies, relics of decaying infrastructures and more conflicts to the social imbalance and poverty that currently seems to be normal to them.”
“The lined-up buyer, the Renaissance consortium, which comprises ND Western, Aradel Energy, First E&P, and Waltersmith, said to be local exploration and production companies are relatively unknown, while Petrolin, a Swiss-based trade and investment company is feared to continue the atrocities of Shell,” Olamide added.
CAPPA argued that divestment by international standards should strictly follow the principle of informed, transparent, and inclusive decision-making.
It suggested that the government, rather than approving all divestment calls, should implement and enforce measures that ensure that corporations in the extractive industry not only align their operations for sustainable development but also, take responsibility for the environmental impact of their activities.
The non-governmental organisation (NGO) tasked the Nigerian government to conduct comprehensive asset integrity tests and thorough environmental audits of Shell’s portfolio before any divestment process is concluded.
