Report Urges Safe Dismantling of Shell’s Infrastructure

A report on the environmental impact of multinational companies in Nigeria stresses the need for Shell to safely dismantle its old infrastructure or cover the costs of remov.al from the Niger Delta before its exit from the region.

Shell’s planned exit from Nigeria’s onshore oil and gas operations, with the sale of the business to a consortium of five mainly local companies for $2.4 billion, poses environmental concerns, according to the report by the Centre for Research on Multinational Corporations (SOMO). While international oil companies seek to divest from Nigeria’s troubled onshore oil sector, the report warns that inadequate dismantling of old assets could exacerbate environmental degradation.

Layi Fatona, vice chairman of ND Western, part of the consortium, emphasized adherence to legal requirements but did not disclose specifics on cleanup budgets. Gbenga Komolafe, head of the Nigerian Upstream Petroleum Regulatory Commission, emphasized the need for oil majors to comply with decommissioning rules before exit consent is granted. However, he refrained from specifying compliance by Shell.

Source: Reuters