The Collapse of TotalEnergies Sale to Chappal Energies raises concerns over President Tinubu’s decision to override NUPRC advice
– 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 belowCitations:[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 InitiativeAccountability Lab NigeriaAfrica Network for Environment and Economic Justice (ANEEJ)African Centre for Media and Information LiteracyAminigboko Community, Emughan Clan, Abua/Odual LGA, Rivers StateAnti-corruption and Transparency Support InitiativeAssociation of Rural Chiefs for Peace & DevelopmentBudgITCenter for Environment Human Rights and DevelopmentCenter for Gender Equity and Sustainable DevelopmentCentre for Renewable Energy and Action on Climate ChangeCENTRE FOR RURAL INTEGRATION AND DEVELOPMENTCITADCivil Rights Council (CRC)Civil Society Legislative Advocacy Centre (CISLAC)/Transparency International NigeriaCivil Society Legislative Advocacy Centre, CISLACCommunity Outreach for Development and Welfare Advocacy (CODWA)Connected AdvocacyDevelopment Research and Synergy InitiativeEagle Eye Transparency and Integrity Initiative EETAIIEcoWomen Connect for Environment and Food InitiativeEedee ladiesEedee Ladies of TaiFoundation for Environmental Rights Advocacy & Development FENRAD NigeriaGbolekekro Women Empowerment and Development Organization (GWEDO)GGTNIGERIAGlobal RightsHealth of Mother Earth FoundationHEDA Resource CentreIbom Peer FoundationInitiative for Social Development in Africa (iSODAF)KEBETKACHE Women Development & Resource CentreLekeh development foundationLincgreen Climate Change InitiativeMiideekor Environmental Development Initiative-MEDIMovement For The Survival Of The Ogoni People – (MOSOP)Network Advancement Program for Poverty and DRR (NAPPDRR)OLEGH Centre for Community DevelopmentOxfamPartners for Community Empowerment (PACE)Partners West Africa – NigeriaPolicy AlertProcurement Observation and Advocacy InitiativeRelief International AfricaResource Centre for Human Rights & Civic education (CHRICEDRhodapomak Center for Empowerment and DevelopmentRights Advocacy and Development Centre – RADECRise For BayelsaSafe Space Development FoundationSamuel Uchechukwu Chukwure’s Family in Ibaa communitySocial Action, NigeriaSocio Economic Research and Development Centre, SERDECSpaces for Change, NigeriaSustainable Collective Advocacy for Africa Development Initiative (SCAAD Initiative )Touch to Heal InitiativeTraditional institutionUniversity of UyoWe the PeopleWomen in Media Communication Initiative (WIM)Women Youths and Children Advancement ProgramYouth for Change and Social Life development foundation YOFCIYouths and Environmental Advocacy Centre (YEAC-Nigeria) International:350HawaiiAFRICA: Seen & HeardAfrican Initiative on Food Security and Environment (AIFE)Andy Gheorghiu ConsultingAnimals Are Sentient Beings, Inc.Anti-Fraud Initiative GhanaAssociation pour la défense des droits à l’eau et à l’assainissementBatani FoundationBoth ENDSCentre for Research on Multinational Corporations (SOMO)Cherokee Concerned CitizensClimate Action for Lifelong Learners (CALL)Climate Camp ScotlandClimate Clock DRCCorner HouseDaraja PressEarthlife Africa DurbanEKOenergy ecolabelFair Finance InternationalFossil Free ParliamentFriends of the Earth FranceHawkmothInternational Lawyers ProjectJamaa Resource InitiativesJubilee Australia Research CentreJust ShareJustice 4 NigeriaMiningWatch CanadaNinja Tune LtdOil Change InternationalOLUCOMEPhysicians for Social Responsibility PennsylvaniaPlatformre•generationReCommonRights and Accountability in Development (RAID)The Future We NeedThe University of Hong Kong(Student)The Vessel Project of LouisianaTipping Point UKUnion of Concerned ScientistsurgewaldWar on WantWeka Afri Sustainable Biodiversity and Food Security Foundation