Amnesty International has hailed the decision of the Nigerian Government to reject the planned sale of onshore assets by the Shell Petroleum Development Company.
The Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had a few days ago, rejected the proposed $1.3bn sale of Shell’s onshore oilfields to the Renaissance Group, citing the buyer’s lack of qualification to manage the assets.
Speaking at a Press Conference in Port Harcourt, the Head, Business and Human Rights of Amnesty International, Mark Dumett, said any multinational oil company seeking to divest from the Niger Delta, must account for decades of human rights abuses related to oil spills which have polluted the environment of the region.
On January 16, 2024, Shell announced its decision to sell its Nigerian onshore subsidiary – the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance, a consortium of five companies comprising four exploration and production companies based in Nigeria and an international energy group.
The completion of the $1.3bn transaction was, however, subject to approvals by the Federal Government of Nigeria and other conditions.
In April, the federal government through the NUPRC developed a divestment framework to guide the assessment of applications for ministerial consent to SPDC. The framework, which consists of seven cardinal pillars, would also guide other similar interventions in the country.
Whilst other multinational oil companies have successfully pulled through with their divestments, NUPRC a few days ago rejected Shell’s application to sell its onshore assets in Nigeria, saying the buyer lacks the capability to manage the assets.
Dumett said that the federal government must insist on the protection of human rights, by holding Shell to accept responsibility for oil spills and commit to financing cleanup efforts in the Niger Delta.
He added that while Shell will not relent in pushing for the proposed sale, the Nigerian Government must not allow Shell to evade remediation of the Niger Delta environment, its contaminated drinking water and poisoned agricultural land.
