Shell’s impending exit from Nigeria’s onshore oil and gas operations, following a $2.4 billion deal with a mostly-local consortium, has raised concerns about the environmental impact of its old infrastructure, Reuters reported on Wednesday.
A report by the Centre for Research on Multinational Corporations (SOMO) suggests that Nigeria must ensure Shell safely dismantles or pays for the removal of these structures from the Niger Delta. The cost of decommissioning could lead to environmental degradation.
The Renaissance consortium, which is taking over, will be responsible for handling oil spills in the delta, often attributed to oil theft and pipeline interference.
The consortium and other oil majors must comply with decommissioning rules before exiting, as per the Nigerian Upstream Petroleum Regulatory Commission.
Local communities are demanding environmental restoration or compensation for land damaged by historical oil spills.
The situation has disrupted their farming and fishing activities, raising concerns about their survival if the soil isn’t restored.
