Groups Urge FG To Resist Shell’s Pressure On Divestment Decision

The Human & Environmental Development Agenda (HEDA Resource Centre), in coalition with other 175 international and local organisations, has urged the Federal Government to stand on the perceived President Bola Ahmed Tinubu’s decision to block Shell’s proposed divestment of its onshore oil fields under the Shell Petroleum Development Company of Nigeria Limited (SPDC) to Renaissance African Energy. This was contained in a statement yesterday by HEDA.

According to the statement, Renaissance, a Special Purpose Vehicle registered in the British Virgin Islands, is reportedly controlled by unknown individuals, raising concerns about transparency and accountability, decommissioning and abandonment, host community development funds, technical and financial capacity, and security for the country.

The statement said that the perceived President’s decision followed an in-depth assessment conducted by S&P Global, an international consultancy firm engaged by the Nigerian Government through the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

According to it, S&P Global’s report flagged multiple issues in Shell’s divestment plan, including concerns over Renaissance’s financial credibility, as Shell is providing 70 per cent financing for the acquisition of the assets, responsible for production of 30 per cent of Nigeria’s oil output.

“Additionally, the report challenged Shell’s low estimates of environmental damage caused by its operations in Nigeria, especially given the recent findings by the Bayelsa State Oil and Environment Commission, which put the cleanup costs for pollution in Bayelsa at $12 billion, with Shell being responsible for a reasonable share of the pollutions,” it said.

In a letter signed by HEDA Chairman, Olanrewaju Suraju, addressed to the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Engr. Gbenga Komolafe, and copied to President Tinubu, UK’s National Crimes Agency, and US Department of Justice on behalf of the coalition, expressed concerns over the NUPRC’s silence on the Shell-Renaissance deal, in contrast to its announcement of approval of other divestment proposals, such as Eni-Oando and Equinor-Project Odinmim.

“This silence suggests the NUPRC’s alignment with S&P Global’s recommendations to reject the Shell-Renaissance transaction,” he said.