N’Delta Group Wants Shell’s Oil Assets Sale Halted, Seeks Compensation

IOC defends self against contempt allegation, says it’s not quitting Nigeria

A Niger Delta group, the Alliance for the Defence of Eleme, has kicked against the recently announced deal by Shell to exit its onshore operations and sell its oil and gas assets to a consortium of five firms.

Leader of the alliance, Johnson MbaNgei, in a statement at the weekend condemned the move, insisting that the international oil company must fully discharge its responsibilities to highly impacted communities before its planned withdrawal.

According to the Niger Delta group, Shell must compensate all communities affected by its activities in the region, especially in cases like Egbalor and the recent spill in Eleme Local Government Area on June 11, 2023.

Describing the alleged damage caused by Shell's decades of operations in the Niger Delta as immense, the group explained that this has resulted in environmental degradation, loss of livelihoods, and adverse health effects for countless members of the communities.

“We, the Alliance for the Defence of Eleme, stand before you today with heavy hearts and unwavering resolve as we address a matter of grave concern: Shell's decision to sell its onshore assets in the Niger Delta region.

“Shell's announcement of its intention to divest its onshore assets, particularly in the Niger Delta region, has sent shockwaves throughout our communities. This move, if approved, will have far-reaching consequences not only for the affected communities but also for the entire region's ecological, socio-economic, and cultural wellbeing.

“As representatives of the people, we vehemently condemn Shell's decision and urge the federal government of Nigeria not to approve this detrimental move. We stand firm in our demand that Shell be held accountable for its actions and that justice be served for the communities it has impacted,” the coalition added.

The reasons provided by Shell for its divestment, namely: To compensate communities affected by its activities, remediate the Niger Delta region and re-evaluate its assets, the group said, are wholly inadequate and fail to address the gravity of the situation.

“First and foremost, Shell must compensate all communities affected by its activities in the Niger Delta region, especially in cases like Egbalor and the recent spill in Eleme Local Government Area on the 11th of June, 2023.

“The damage caused by Shell's operations has been immense, resulting in environmental degradation, loss of livelihoods, and adverse health effects for countless individuals. Any attempt to divest without fulfilling this crucial obligation would be an egregious betrayal of justice and humanity,” the alliance stated.

Furthermore, it demanded that Shell must commit to a comprehensive remediation effort for the entire Niger Delta region before even considering leaving.

Decades of oil spills, gas flaring, and other environmental abuses, it maintained, have left the region's ecosystem in ruins, threatening the health and well-being of its inhabitants.

Besides, it pointed out that Shell cannot simply wash its hands of its responsibility and walk away, insisting that it must take concrete actions to undo the damage it has caused and restore the region to its former glory.

Moreover, the Eleme group noted that Shell must conduct a thorough re-evaluation of its entire asset portfolio to ensure that dysfunctional assets are not sold to investors.

“It is imperative that Shell does not pass on its liabilities to unsuspecting parties, knowing full well the imminent catastrophe that could unfold in the short term.

“Any attempt to offload problematic assets without proper disclosure and accountability would be nothing short of a betrayal of trust and a disregard for human life and the environment.

“In conclusion, we call upon the federal government of Nigeria to reject Shell's proposal to sell its onshore assets in the Niger Delta region. We implore Shell international to reconsider its stance and take meaningful steps to address the grievances of the affected communities and the wider region,” the group said.

The coalition maintained that justice, accountability, and environmental stewardship must prevail, stressing that it will not rest until the aforementioned principles are upheld.

Meanwhile, Shell has said it has no plan of quitting Nigeria, nor disposing of all of its assets in the country.

Shell's clarification is coming on the heels of a committal to prison proceedings initiated last week against four of its officials by an oil producing community in Ondo State.

The community last Wednesday filed the "Form 48" against shell and four of his official, for allegedly violating the orders of court.

Recall that Justice T. B. Adegoke of a Federal High Court in Akure, had last year, made an "Order of Mareva injunction, restraining shell from disposing off any of their assets in any part of Nigeria, pending the hearing and determination of the suit of the plaintiffs.