Shell withdraws from the onshore sector in Africa’s biggest economy

Shell, the British energy company, has announced a $2.4 billion deal to sell its onshore assets in Nigeria. This move comes as Shell faces ongoing legal battles related to environmental pollution in the country.

The sale to the Renaissance group, a consortium of five companies, is aimed at streamlining the operations of Shell Petroleum Development Company of Nigeria Limited (SPDC). Shell’s integrated gas and upstream director, Zoe Yujnovich, stated that this agreement is a significant milestone for the company in Nigeria, allowing them to focus future investments on their Deepwater and Integrated Gas positions.

SPDC, after being a pioneer in Nigeria’s energy sector for decades, will now enter a new chapter under the ownership of an experienced Nigerian-led consortium. Shell’s decision to exit oil production in the Niger Delta aligns with the trend of Western energy companies withdrawing from Nigeria to prioritize more profitable ventures. Other major energy companies like Eni, Exxon Mobil, and Equinor have also sold their assets in the country.

Amnesty International has urged the Nigerian government to ensure that Shell addresses environmental damage concerns caused by years of oil spills in the Niger Delta region before approving the sale.

In a statement on X (formerly Twitter), Mark Dummett, Amnesty International’s director of human rights, emphasized the detrimental impact of oil spills on the well-being and livelihoods of Niger Delta residents.

He firmly stated that Shell cannot evade accountability and abandon the problems it has caused. Numerous locals have lodged complaints against the London-based energy giant, seeking compensation for the disruption of their livelihoods caused by pollution resulting from these spills.

The UK High Court’s ruling last year granted over 13,000 farmers and fishers from the oil-producing communities of Ogale and Bille the right to sue Shell for violating their constitutional right to a clean environment.

Despite these claims, Shell has consistently denied responsibility, attributing the majority of the leaks to pipeline sabotage and illegal crude oil extraction.

Recently, Shell announced that potential SPDC owner Renaissance, comprising ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, will assume responsibility for spills, theft, and sabotage.