Amnesty hails FG’s decision to reject $1.3b sale of Shell’s onshore assets

Amnesty International has hailed the decision of the Federal Government to reject the planned sale of onshore assets by the Shell Petroleum Development Company (SPDC).

A few days ago, the Federal Government, through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), rejected the proposed $1.3bn sale of Shell’s onshore oilfields to the Renaissance Group, due to the buyer’s lack of qualification to manage the assets.

Speaking at a press conference in Port Harcourt, Rivers State, the Head of Business and Human Rights at Amnesty International, Mark Dummett, said any multinational oil company seeking to divest from the Niger Delta must account for decades of human rights abuses related to oil spills that have led to environmental pollution in the region.

Shell announced on January 16, 2024, 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. This framework, which consists of seven cardinal pillars, will also guide other similar interventions in the country.

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While other multinational oil companies have succeeded in completing their divestments, a few days ago, the NUPRC rejected Shell’s application to sell its onshore assets in Nigeria, stating that the buyer lacks the capability to manage the assets.

Dummett said that the Nigerian Government must insist on the protection of human rights by holding Shell accountable for oil spills and committing 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 the company to evade the remediation of the Niger Delta environment, its contaminated drinking water, and poisoned agricultural land.