The groups stated in the letter that the deal appears to fall far short of several regulatory and legal requirements.
Global human rights organisation, Amnesty International and 39 other civil society and environmental rights groups have asked the Nigerian government to stop the multinational oil company, Shell PLC’s move to sell its Niger Delta business unless human rights are fully protected.
The groups said that the proposed sale of Shell’s onshore oil business in the Niger Delta region of Southern Nigeria risks worsening human rights abuses and should be blocked by the Nigerian government unless a series of safeguards are put in place.
The groups in an open letter to the Nigerian industry regulator, said that the sale of Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy should not be allowed to proceed unless the environmental pollution caused by SPDC has been fully assessed, sufficient funds are provided by SPDC to guarantee clean-up costs can be covered, and local communities have been fully consulted.
Olanrewaju Suraju, chairman of the Human and Environmental Development Agenda (HEDA) said, “Shell’s operations in the Niger Delta over many decades have come at the cost of grievous human rights abuses of the people living there.
“Frequent oil leaks from its infrastructure and inadequate maintenance and clean-up practices have left groundwater and drinking water sources contaminated, poisoned agricultural land and fisheries, and severely damaged the health and livelihoods of inhabitants.”
Also, Amnesty International Nigeria Director, Isa Sanusi, said, “There is now a substantial risk Shell will walk away with billions of dollars from the sale of this business, leaving those already harmed without remedy and facing continued abuse and harms to their health.
“Guarantees and financial safeguards must be in place to immediately remedy existing contamination and to protect people from future harms before this sale should be allowed to proceed.
“Shell must not be permitted to slip away from its responsibilities for cleaning up and remedying its widespread legacy of pollution in the area.”
The groups said that the open letter was a sequel to Shell’s announcement in January that it had agreed to sell SPDC to the Renaissance consortium, which comprises four exploration and production companies based in Nigeria and an international energy group, in a deal worth up to US$2.4 billion financed partly with a loan to the buyers from Shell.
The groups stated in the letter that the deal appears to fall far short of several regulatory and legal requirements.
The coalition said, “These include the apparent lack of an environmental study to assess clean-up requirements, and an evaluation to ensure sufficient funds are set aside for potential decommissioning of oil infrastructure – a sum that is likely to amount to several billions of US dollars.”
They further noted what they described as the lack of an inventory of the physical assets being sold, which according to the groups, is a red flag potentially indicative of the state of disrepair of pipelines and infrastructure from which many leaks have emanated.
They said, “Leaks have frequently had devastating consequences on local people’s health and wellbeing. Everyone has a right to a clean, healthy and sustainable environment.”
The letter also noted that similar sales in Nigeria have sometimes exposed people in polluted communities to enduring harm, as purchasers have sometimes lacked sufficient financial resources to manage the infrastructure effectively.
The letter pointed out that following a previous Shell divestment of Oil Mining Lease 26 (OML 26) to First Hydrocarbon Nigeria in 2010, “The majority shareholder of the acquiring company went into liquidation and its chief executive officer and chief operating officer were convicted in the United Kingdom of fraud.”
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