– Shell-Renaissance divestment deal must be reviewed
According to recent Nigerian media reports [1] and a statement by the oil regulator itself, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) [2] has cancelled the approval for TotalEnergies $860 million sale of its share in the Renaissance Africa Energy Company Joint Venture to Chappal Energies. The Joint Venture was managed by Shell prior to the sale of the Shell Petroleum Development Company to Renaissance.
Although public details are scarce as to the collapse of the Total-Chappal deal, media reports record the NUPRC spokesperson as confirming that Chappal Energies failed to raise the funds, and as a result TotalEnergies reportedly did not fulfil its requirement to pay regulatory fees and cover funds for environmental rehabilitation and future liabilities.[3]
We welcome NUPRC’s enforcement of the regulations it is mandated to enforce, but regret that it has taken months for the decision to enter the public domain. The Nigerian public has a right to be informed of such developments as and when they occur.
Now that the Total-Chappal deal has been revealed to have been founded on sand, the question arises why did the deal obtain ministerial consent in the first place? And, if Ministers gave approval for a deal that was without foundation, what other permissions have been similarly granted?
In particular, the cancellation of the Total-Chappal sale calls into question President Tinubu’s decision to over-rule NUPRC’s advice that the sale of SPDC to Renaissance did not meet the regulatory requirements. That advice is understood to have rested on concerns over Renaissance’s technical and financial ability to pay for the historic liabilities of SPDC for cleaning up pollution from its operations and facilities, which are likely to run into tens of billions of dollars.
We therefore call for the Shell-Renaissance deal to be subject to independent review. If NUPRC’s concerns were indeed well founded, there is a huge risk that the Nigerian people will end up having to pick up the tab for cleaning up SPDC’s mess. We also call for the release of the Environmental Evaluation Studies (EES) for each sale, and also the S&P assessment that was reportedly commissioned by NUPRC to assess the sale of SPDC to Renaissance.
Democracy is not a spectator sport. It rests on the active involvement of citizens. As we mark the posthumous birthday of Ken Saro-Wiwa on 10th October and approach the 30 year memorial of the Ogoni-9, we demand action against these companies and their abusive practices.
We call on civil society groups and parliamentarians to take up the call for the government to take urgent measures to ensure that the legacy of pollution caused by international oil companies is immediately cleaned up to international standards. And that the companies pay, not the Nigerian state and its peoples. It is unacceptable that the companies should profit at the expense of Nigeria.
Signed,
106 representatives of Nigerian and international civil society organizations, community groups, and concerned citizens listed below
Citations:
[1] https://www.premiumtimesng.com/business/823356-nuprc-cancels-totalenergies-860-million-nigerian-onshore-oil-business-sale.html
[2] https://www.nuprc.gov.ng/nuprc-clarifies-totalenergies-chappal-deal/
[3] https://www.premiumtimesng.com/business/823356-nuprc-cancels-totalenergies-860-million-nigerian-onshore-oil-business-sale.html
Nigerian signees:
21st Century Community Empowerment for Youth and Women Initiative
Accountability Lab Nigeria
Africa Network for Environment and Economic Justice (ANEEJ)
African Centre for Media and Information Literacy
Aminigboko Community, Emughan Clan, Abua/Odual LGA, Rivers State
Anti-corruption and Transparency Support Initiative
Association of Rural Chiefs for Peace & Development
BudgIT
Center for Environment Human Rights and Development
Center for Gender Equity and Sustainable Development
Centre for Renewable Energy and Action on Climate Change
CENTRE FOR RURAL INTEGRATION AND DEVELOPMENT
CITAD
Civil Rights Council (CRC)
Civil Society Legislative Advocacy Centre (CISLAC)/Transparency International Nigeria
Civil Society Legislative Advocacy Centre, CISLAC
Community Outreach for Development and Welfare Advocacy (CODWA)
Connected Advocacy
Development Research and Synergy Initiative
Eagle Eye Transparency and Integrity Initiative EETAII
EcoWomen Connect for Environment and Food Initiative
Eedee ladies
Eedee Ladies of Tai
Foundation for Environmental Rights Advocacy & Development FENRAD Nigeria
Gbolekekro Women Empowerment and Development Organization (GWEDO)
GGTNIGERIA
Global Rights
Health of Mother Earth Foundation
HEDA Resource Centre
Ibom Peer Foundation
Initiative for Social Development in Africa (iSODAF)
KEBETKACHE Women Development & Resource Centre
Lekeh development foundation
Lincgreen Climate Change Initiative
Miideekor Environmental Development Initiative-MEDI
Movement For The Survival Of The Ogoni People – (MOSOP)
Network Advancement Program for Poverty and DRR (NAPPDRR)
OLEGH Centre for Community Development
Oxfam
Partners for Community Empowerment (PACE)
Partners West Africa – Nigeria
Policy Alert
Procurement Observation and Advocacy Initiative
Relief International Africa
Resource Centre for Human Rights & Civic education (CHRICED
Rhodapomak Center for Empowerment and Development
Rights Advocacy and Development Centre – RADEC
Rise For Bayelsa
Safe Space Development Foundation
Samuel Uchechukwu Chukwure’s Family in Ibaa community
Social Action, Nigeria
Socio Economic Research and Development Centre, SERDEC
Spaces for Change, Nigeria
Sustainable Collective Advocacy for Africa Development Initiative (SCAAD Initiative )
Touch to Heal Initiative
Traditional institution
University of Uyo
We the People
Women in Media Communication Initiative (WIM)
Women Youths and Children Advancement Program
Youth for Change and Social Life development foundation YOFCI
Youths and Environmental Advocacy Centre (YEAC-Nigeria)
International:
350Hawaii
AFRICA: Seen & Heard
African Initiative on Food Security and Environment (AIFE)
Andy Gheorghiu Consulting
Animals Are Sentient Beings, Inc.
Anti-Fraud Initiative Ghana
Association pour la défense des droits à l’eau et à l’assainissement
Batani Foundation
Both ENDS
Centre for Research on Multinational Corporations (SOMO)
Cherokee Concerned Citizens
Climate Action for Lifelong Learners (CALL)
Climate Camp Scotland
Climate Clock DRC
Corner House
Daraja Press
Earthlife Africa Durban
EKOenergy ecolabel
Fair Finance International
Fossil Free Parliament
Friends of the Earth France
Hawkmoth
International Lawyers Project
Jamaa Resource Initiatives
Jubilee Australia Research Centre
Just Share
Justice 4 Nigeria
MiningWatch Canada
Ninja Tune Ltd
Oil Change International
OLUCOME
Physicians for Social Responsibility Pennsylvania
Platform
re•generation
ReCommon
Rights and Accountability in Development (RAID)
The Future We Need
The University of Hong Kong(Student)
The Vessel Project of Louisiana
Tipping Point UK
Union of Concerned Scientists
urgewald
War on Want
Weka Afri Sustainable Biodiversity and Food Security Foundation
