Press Release IV, January 16, 2024.

YOU’RE FREE TO SELL ONSHORE ASSETS BUT ADDRESS LIABILITIES FIRST, YEAC-NIGERIA TELLS SHELL

…CALLS ON FG NOT TO APPROVE SALES OF SPDC WITHOUT BLUEPRINT ON LIABILITY, COMMUNITY EQUITY

Fyneface Dumnamene Fyneface, Executive Director of the Youths and Environmental Advocacy Centre (YEAC-Nigeria), said Shell is free to sell its onshore oil stake in Nigeria to any prospective buyer, provided issues around Shell’s liabilities in the communities have been addressed.

“I strongly believed that Shell has lots of liabilities, especially those relating to court judgements for payment of compensation to communities that they polluted, as well as oil spill clean-up cases that they needed to address before talking about the sale of their onshore oil stake. I particularly remembered the Ebubu community in the Ogoni case with Shell over an oil spill and compensation following a court judgment that has not been properly addressed, and the company cannot go ahead to sell its facilities without addressing associated liabilities that the new buyers may not want to inherit,” Mr. Fyneface said.

He called on Renaissance, the company that agreed to buy the SPDC onshore facilities in Nigeria, formed of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, to be careful in their purchase and be aware that the liabilities of Shell will be transferred to them.

“It is also important that host communities in the Niger Delta are carried along to participate in these $1.3 billion sales and some percentage seeded to the communities as equity ownership to create a buy-in by the people and an enabling environment for the smooth operation of the new operators being the new buyers.”

Mr. Fyneface said and called on the Federal Government not to approve the proposal sale of Shell onshore business facilities until all issues relating to liabilities have been addressed with communities in the Niger Delta through a blueprint proposed as part of the ownership transfer process.

FYNEFACE DUMNAMENE FYNEFACE,
Executive Director, YEAC-Nigeria,
16-01-2024