Latest News

Shell faces calls to securely decommission old properties before Nigeria exit

Nigeria requires to ensure that Shell securely dismantles its old facilities or pays to eliminate them from the Niger delta before its exit, states a. report on the ecological effect of the activities of. international business.

Shell is set to leave from Nigeria's onshore oil and gas. operations after concurring in January to sell business to a. consortium of 5 primarily regional companies for $2.4 billion.

The deal is the most recent by an international oil business. seeking to divest from Nigeria's troubled onshore oil sector. But the cost of taking apart old possessions could leave the country. with ecological degradation, says the report by the not for. earnings Centre for Research study on Multinational Corporations (SOMO).

The big issue is that Shell is leaving onshore Niger delta. and leaving behind possibly an enormous bill for (clean up),. SOMO's executive director, Audrey Gaughran said.

Shell did not react to requests for remark.

It stated the when it revealed the offer in January. Renaissance consortium would take over duty for. dealing with oil spills in the delta which Shell has long. preserved are primarily due to theft of oil and interference with. pipelines.

Layi Fatona, vice chairman of ND Western, among the five. companies in the Renaissance consortium, did not comment. directly on the concern or how much it had allocated to tidy up,. however told that the grouping will follow the nation's. legal requirements.

Gbenga Komolafe, head of Nigerian Upstream Petroleum. Regulatory Commission, informed that oil majors would require. to reveal compliance with guidelines on decommissioning among others. before they are given consent to exit.

He did not name Shell and the regulator decreased to comment. on whether the oil major or other business have adhered to. the rules. The federal government has actually suggested that it would not block. the Shell deal.

Communities in the delta are likewise requiring environmental. restoration or compensation from Shell for land harmed by. historic oil spills.

We depend upon farming and fishing, but now our lands and. rivers have actually been damaged. If they leave without healing the. soil, how do we make it through?, says 61-year-old farmer Ayibakuro. Warder, from Ikarama community in Bayelsa state.

(source: Reuters)