HEDA Resource Centre petitioned the Nigerian Upstream Petroleum Regulatory Commission to stand firm in rejecting Shell’s planned divestment of onshore assets, citing unaddressed financial and environmental concerns.

HEDA’s chair, Olanrewaju Suraju, addressed the petition to Gbenga Komolafe, NUPRC chief executive, on September 25.

The NUPRC rejected Shell’s bid to sell SPDC to Renaissance based on the recommendations of S&P Global, a reputable consultancy firm hired to assess the International Oil Company’s proposal to divest its onshore assets.

The report by S&P Global raised concerns over the fact that Shell will be providing Renaissance with 70 per cent of the funds required to acquire its onshore assets.

According to S&P, the move suggested that Renaissance lacks the financial wherewithal to acquire the asset, let alone operate it.

S&P Global accused Shell of downplaying the degree of damage and pollution its pipelines had caused certain communities to avoid paying heavily to remedy the mess.

Mr Suraju said he was aware that Shell was making desperate efforts and mounting pressure on relevant NUPRC officials to overturn the rejection and that “the last UK government was actively lobbying on Shell’s behalf.”

Also, the British High Commission admitted that the same set of Shell top staff operating the SPDC assets would continue to run it after Renaissance acquired it.

Shell admitted to not completing clean-ups in spillage areas.

“The spillage on the Western Delta has been cleaned up but they still have some challenges with Eastern Delta,” HEDA cited the FOI response.

Mr Suraj feared that Shell wanted to exit Nigeria without “cleaning up the devastation it has caused” and leave the burden of remediating a damaged pipeline to Renaissance— a company that cannot afford to buy SPDC without Shell’s financial assistance.

HEDA chair urged the NUPRC to continue to oppose the planned SPDC divestment until Shell satisfactorily addresses the concerns raised.

“We would like to hold that Shell’s proposed divestment of SPDC should remain rejected, and the environmental and social concerns surrounding Shell’s proposed divestment be cleared before any proposal for divestment is subsequently considered,” the petition said.