The Federal Government's decision to block the proposed sale of onshore assets by Shell Petroleum Development Company (SPDC) has been commended by Amnesty International. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) recently rejected the $1.3 billion sale of Shell's onshore oilfields to the Renaissance Group due to the buyer's inadequate qualifications to manage the assets.
During a press conference in Port Harcourt, Rivers State, Mark Dummett, the Head of Business and Human Rights at Amnesty International, emphasized that any multinational oil company looking to divest from the Niger Delta must address the longstanding human rights violations associated with oil spills that have caused significant environmental damage in the area.
On January 16, 2024, Shell announced its intention to sell its Nigerian onshore subsidiary, the Shell Petroleum Development Company of Nigeria Limited (SPDC), to Renaissance, a consortium made up of four Nigerian exploration and production companies and one international energy firm.
However, the completion of this $1.3 billion deal was contingent upon approvals from the Federal Government of Nigeria and other stipulations.
In April, the Federal Government, via the NUPRC, established a divestment framework to evaluate applications for ministerial consent regarding SPDC. This framework, which includes seven key principles, is intended to guide similar future actions in the country.
While several multinational oil companies have successfully completed their divestments, the NUPRC recently rejected Shell’s application to sell its onshore assets in Nigeria, citing the buyer's lack of capability to manage them.
Dummett urged the Nigerian Government to prioritize human rights protection by holding Shell accountable for oil spills and ensuring funding for cleanup initiatives in the Niger Delta.
He emphasized that although Shell will continue to advocate for the proposed sale, the Nigerian Government must ensure that the company does not escape its responsibility to remediate the environmental damage in the Niger Delta, including the polluted drinking water and contaminated agricultural land.