As Shell prepares to exit Nigeria’s onshore oil and gas operations by selling its business to a local consortium for $2.4 billion, concerns about the environmental impact of leaving behind old infrastructure loom large, according to a report by the Centre for Research on Multinational Corporations (SOMO).
The multinational company’s exit raises fears of potential environmental degradation, as the cost of dismantling old assets could burden the country. While Shell claims the Renaissance consortium will handle oil spill responsibilities in the Niger Delta, the SOMO report emphasizes the risk of a substantial cleanup bill being left behind.
SOMO’s Executive Director, Audrey Gaughran, highlighted the significant issue of potential environmental liabilities in the onshore Niger Delta, emphasizing the risk of a substantial cleanup cost.
Although the Renaissance consortium, comprising mostly local companies, has not disclosed specific details on their cleanup budget, Layi Fatona, Vice Chairman of ND Western (a consortium member), emphasized adherence to the country’s legal requirements.
The Head of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, stressed that oil majors must comply with decommissioning rules before receiving consent to exit, without explicitly mentioning Shell. However, the government has indicated it will not impede the Shell deal.
Amidst these concerns, communities in the Niger Delta are demanding environmental restoration or compensation from Shell for land damaged by historical oil spills. Farmers and residents, such as 61-year-old Ayibakuro Warder from Ikarama community in Bayelsa state, express anxiety over their dependence on farming and fishing, emphasizing the need for healing the soil to ensure their survival.
