Shell’s Decision to Sell Big Piece of Nigeria Oil Business Sparks Environmental Concerns

Shell has recently announced its agreement to sell its onshore business in Nigeria’s Niger Delta to a consortium of companies for a whopping $2.4 billion. This move is seen as part of the energy company’s efforts to minimize its involvement in the West African nation amidst ongoing complaints about environmental pollution caused by the oil industry.

The assets being sold include 15 onshore mining leases and three shallow-water operations, predominantly owned by the Nigerian government’s national oil company NNPC. While Shell operates the assets and holds a 30% stake, the remaining shares are held by France’s TotalEnergies and Italy’s Eni.

Although Shell views this as a strategic move to streamline its operations and focus on deepwater and integrated gas projects, environmental activists in the Niger Delta are urging the government to address the environmental damage before granting approval for the sale.

The Niger Delta, a region heavily reliant on petroleum resources, has been adversely affected by pollution from oil and natural gas production. This has led to a lack of access to clean water, agricultural decline, and increased tensions. Militant groups have taken advantage of the situation, perpetuating violence and disrupting the oil industry with attacks on facilities and kidnappings.

To address the environmental concerns, the Youths and Environmental Advocacy Centre, along with other activists, have called on the Nigerian government to ensure that Shell and the new buyers provide a comprehensive plan for remediating environmental damage and compensating affected communities.

While Shell has assured that it will continue to conduct remediation as the operator of the joint venture where spills may have occurred, concerns remain about the potential legacy issues that could arise from the sale.

It is evident that the sale of Shell’s onshore business in Nigeria is a complex and sensitive issue, particularly concerning its environmental impact. As the Nigerian government reviews the proposed transaction, it is crucial that the interests of local communities and the environment are given the utmost priority.