HEDA Resource Centre

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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

CategoriesHEDA News

HEDA Urges Tinubu, NUPRC to Hold Shell Accountable for Environmental Clean-Up

Following the recent reported approval of Shell Petroleum Development Company’s (SPDC) $2.4 billion divestment of its onshore assets in the Niger Delta to Renaissance Africa Energy Holdings, The Human and Environmental Development Agenda (HEDA Resource Centre) strongly urges President Bola Ahmed Tinubu and the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to ensure that Shell fulfills its obligations by addressing the environmental devastation it has caused in the Niger Delta before finalizing this divestment. In a statement signed by HEDA’s Chairman, Olanrewaju Suraju, the civil society group emphasized that Shell must not be allowed to walk away from decades of environmental degradation, legal liabilities, and social injustices inflicted on host communities. According to Suraju, the reports indicate the divestment was concluded despite ongoing litigations, a court-ordered injunction barring the sale, and over N500 billion in environmental damages being demanded by affected communities. He condemned this development, stating, “This blatant disregard for judicial authority not only undermines Nigeria’s legal system but also sets a dangerous precedence where multinational corporations can evade responsibility with impunity.” Furthermore, HEDA criticized the approval of the transaction without proper consultation with impacted communities, describing it as yet another act of marginalization against local populations whose lives and livelihoods have been severely affected by oil pollution. “Shell has a long history of environmental infractions in the Niger Delta, leaving communities to suffer the consequences of oil spills, gas flaring, and ecosystem destruction. These damages have led to the loss of livelihoods, severe health risks, and the destruction of aquatic and agricultural resources. It is, therefore, unacceptable for Shell to divest its assets without first remediating the affected areas. The burden of cleanup and legal liabilities must not be transferred to the incoming Nigerian operators, who may lack the technical and financial capacity to address these longstanding issues. HEDA aligns with the concerns raised by host communities, environmental groups, and civil society organizations, all of whom have called for a halt to the sale until Shell takes full responsibility for its environmental footprint. “The Federal Government must prioritize justice over profit by ensuring that Shell and its partners commit to a comprehensive and independently monitored cleanup process before exiting the onshore oil sector. Additionally, we are calling on the NUPRC to uphold its regulatory integrity and resist any external pressure that undermines transparency and accountability in the sector. The Commission must act in the best interest of the Nigerian people rather than succumb to corporate or political interests.” The people of the Niger Delta deserve justice, clean water, and a restored environment. HEDA Resource Centre stands firmly with affected communities in demanding that Shell cleans up its mess before exiting. The organization pledges to explore all legal and advocacy channels to ensure that this demand is met.

CategoriesHEDA News

Oil and Gas Exploration: 70% of Bayelsa Residents Blame Oil Activities for Pollution; 79% Suffer Health Issues, 82% Criticize Government Response – HEDA Report

–  CSO Demands effective remediation efforts, greater accountability from IOCs, FG A recent report by the Human and Environmental Development Agenda (HEDA Resource Centre) has highlighted the severe impact of oil and environmental pollution in Bayelsa State, one of the oil-producing states in the Niger Delta region. The report, titled “Report of On-the-Spot Assessment of Oil and Gas Exploration Activities in Bayelsa State, Nigeria,” provides a detailed account of the detrimental effects of frequent oil exploitation, spills and pollution in Bayelsa. The findings reveal a significant reduction in agricultural productivity, increasing contamination of water resources, and loss of biodiversity, leading to long-term ecosystem damage and the disappearance of traditional medicinal plants. The comprehensive survey, which involved 289 respondents from all eight local government areas in Bayelsa State, including Brass, Ekremor, Lolokuma/Opokuma, Nembe, Ogbia, Sagbama, Southern Ijaw, and Yenagoa, found that 70.2% of respondents believe that oil and gas activities have significantly contributed to environmental pollution and degradation in the State. Water pollution was reported by 55.7% of respondents, making it the most prevalent type of pollution experienced. This was followed by air pollution (23.18%), soil pollution (15.92%), and other types of pollution (4.84%). The research also discovered that majority of respondents 79.24% and their families in each of the local government areas experience negative health effects due to oil pollution in their communities. The local government areas of Kolokuma/Opokuma, Nembe, and Yenagoa, which have a high number of oil installations, reported particularly high levels of health issues. On the question of government accountability, 70.24% of respondents believe that the government does not hold oil and gas companies accountable for environmental damage, while only 20.42% expressed that they are somewhat accountable, and 9.34% said they are highly accountable. Additionally, 54.86% of respondents believe that companies can adequately address concerns related to land degradation or deforestation resulting from oil and gas activities. In terms of government responsiveness, 81.94% of respondents are not satisfied with the response of federal government agencies to environmental concerns raised by the affected communities. Furthermore, 75.26% do not believe that government agencies effectively oversee and enforce regulations to protect the rights of the community. The report also evaluated the handling of oil and gas asset divestment by Shell Petroleum Development Company (SPDC) and Nigerian Agip Oil Company (NAOC) in Bayelsa State. Respondents rated the divestment handling as poor (67.13%), fair (18.34%), not available (8.65%), good (5.19%), and excellent (0.69%). Similarly, 72.32% of respondents rated the transparency of International Oil Companies (IOCs) in communicating processes as poor, while 12.80% rated it fair, 5.54% good, 0.35% excellent, and 9.00% not available. Local community involvement in the divestment process was also assessed, with 41.52% of respondents stating that they are not involved at all, 39.79% not very involved, 12.11% somewhat involved, and 0.69% very involved. Regarding the perception of companies’ responsiveness to citizens’ concerns and feedback on divestment, 42.56% of respondents said they are not responsive at all, 25.26% not very responsive, and only 1.73% found them responsive. When asked about their awareness of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) checklist, 73% of respondents said they do not know about the NUPRC checklist, while 27% said they are aware and have access to it. Focus Group Discussions conducted as part of the research highlighted several critical issues, including environmental catastrophes, severe impacts on respondents’ livelihoods, human rights violations, health crises, and socio-cultural degradation. The focus group discussions underscored the urgent need for infrastructural maintenance to prevent such failures. Meanwhile, HEDA’s Chairman, Olanrewaju Suraju emphasized the need for urgent action, stating, “The NUPRC should enforce environmental regulations with stricter penalties for non-compliant IOCs. Increased funding and ensuring transparency in remediation efforts are essential. Regular engagement between IOCs, government agencies, and communities should be mandated, along with the development of community-led monitoring initiatives. “Launching comprehensive health programs and conducting long-term health studies are vital. Sustainable livelihood programs, and fair compensation for affected communities should be prioritized. Strengthening anti-corruption frameworks with technology for transparency is crucial.” The report’s findings are stark reminders of the ecological and economic sustainability challenges facing Bayelsa State. As Suraju noted, “The findings of this research highlight the urgent need for comprehensive and effective remediation efforts, stronger regulatory enforcement, and greater accountability from both IOCs and government bodies. These measures are crucial for evaluating the effectiveness and impact of leases in various capacities and guiding development, enhancing accountability, and informing stakeholders.” The full report of the “On-the-Spot Assessment of Oil and Gas Exploration Activities in Bayelsa State, Nigeria” is available on the HEDA website and can be downloaded here (Report of On-the-Spot Assessment of Oil and Gas Exploration Activities in Bayelsa State, Nigeria – HEDA Resource Centre). The report offers valuable insights to inform discussions, policies, and decisions shaping the nation’s future.