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Stakeholders Call For Transparency In SPDC’s Proposed Divestment

Shell's announcement in January 2024 to divest its onshore oil assets to local companies for $1.3bn, had sparked intense deliberations about the future of oil production and investment in Nigeria, as well as the fate of oil-polluted host communities.


In an aerial view, gas prices nearing $6.00 a gallon are displayed at a Shell gas station on February 23, 2022 in San Francisco, California. Justin Sullivan/Getty Images/AFP
FILE: In an aerial view, gas prices nearing $6.00 a gallon are displayed at a Shell gas station on February 23, 2022 in San Francisco, California. Justin Sullivan/Getty Images/AFP

 

Environmental activists have demanded transparency and accountability regarding Shell Petroleum Development Company (SPDC)’s proposed divestment of some oil assets in the Niger Delta. 

The calls were amplified at the 35th Anti-Corruption Situation Room workshop, organised by the Human and Environmental Development Agenda (HEDA) in collaboration with the National Human Rights Commission (NHRC) in Port Harcourt, the capital of Rivers State.

At the Tuesday event, participants engaged in vigorous discussions about the implications of Shell’s intended divestment in Nigeria’s oil and gas industry. The workshop provided a platform for environmental activists and representatives of oil-producing communities to voice their concerns.

Shell’s announcement in January 2024 to divest its onshore oil assets to local companies for $1.3bn had sparked intense deliberations about the future of oil production and investment in Nigeria as well as the fate of oil-polluted host communities.

READ ALSO: Shell To Sell Nigerian Onshore Oil Business

In his keynote address, the Executive Commissioner of Corporate Services and Administration at the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Kelechi Ofoegbu outlined the regulatory framework for divestment, highlighting the importance of community engagement.

During the interactive session, the Director of the Human Rights Institute National  Human Rights Commission Agharese Arase underscored the need for fair treatment of host communities by IOCs. She however advised them to demand their rights peacefully.

Environmental activist Celestine Akpobari raised critical questions about the commitment of indigenous companies acquiring SPDC to address the environmental degradation in affected areas.

“One truth that we must talk about, is what these had done to us and continue to do to us. And if we do nothing, there will be nowhere for our future generation,” Akpobari lamented.

READ ALSOShell Eyes $6bn In Nigeria Offshore, Gas Investments

As the workshop ended, participants submitted memoranda advocating for fairness and equity in the impending asset divestment, underlining the imperative of inclusive decision-making and environmental justice within Nigeria’s oil and gas sector.