A recent report titled: “Selling Out Nigeria, Shells Irresponsible Divestment” by the Centre for Research on Multinational Corporations (Somo) asserts that Shell should not be permitted to divest from the Niger Delta until it addresses its responsibility for cleaning up pollution and safely decommissioning abandoned oil infrastructure.
Despite the substantial profits reaped from the region’s oil resources, the report emphasizes Shell’s obligation to address the toxic legacy of pollution it has caused.
The report highlights the urgency of Shell’s responsibility in safely decommissioning its abandoned oil infrastructure to mitigate its environmental impact.
The lack of clarity regarding financing for decommissioning activities is underscored in the report.
While Nigerian law mandates corporations to allocate finances for decommissioning, it remains unclear how much money, if any, Shell has reserved for this purpose.
Audrey Guaghram, Executive Director of SOMO, stated, “Shell cannot be allowed to divest from the onshore oil industry in the Niger Delta before it takes responsibility for its toxic legacy of pollution and the safe decommissioning of abandoned oil infrastructure.”
The report criticizes Shell’s alleged neglect in establishing reserves to finance the decommissioning of oil mining leases it has divested.
Shell’s assertion that oil theft and pipeline tampering are the primary causes of oil spills is challenged in the report, which emphasizes that these factors do not absolve Shell of its cleanup obligations.
According to the report, “Under Nigerian law, Shell must clean up oil spills no matter the cause. It has failed to do so.”
In summary, the report urges Shell to prioritize cleaning up pollution and decommissioning abandoned infrastructure in the Niger Delta before proceeding with its divestment plans, highlighting the severe environmental and social consequences of its actions in the region.
