Shell has clarified its position regarding environmental remediation responsibilities for its onshore oil assets in Nigeria. The company stated that once its $2.4 billion onshore oil assets transaction is completed, the responsibility for remediating environmental impacts from its operations, as well as historical spills, will be taken over by its Joint Venture (JV) partners. The company emphasized that the roles and responsibilities of the Shell Petroleum Development Company of Nigeria Limited (SPDC) JV partners would remain unchanged, and SPDC would continue to be accountable for its share of commitments within the JV.
Shell’s onshore oil assets in Nigeria are set to be sold to a consortium of four Nigerian oil firms and one foreign business concern. The clarification from Shell comes in response to concerns from residents of the Niger Delta region, who fear that the company might abandon polluted environments. Shell affirmed its commitment to funding its share of financial commitments to the Hydrocarbon Pollution Remediation Project (HYPREP) in Ogoni land, a project created by the Nigerian government to address recommendations made in a 2011 United Nations (UN) report.
Additionally, Shell stated that communities would experience no change in their day-to-day dealings with SPDC as a result of the transaction, and engagement with communities would remain an integral part of SPDC’s operations. The company also pledged to establish and fund a foundation focused on business enterprise and start-ups outside the announced transaction, with details to be shared in due course.
Meanwhile, Shell reported a 30% drop in profits for 2023, totaling $28 billion, influenced by lower chemicals and refining profit margins and slower fuel sales. Despite the drop in profits, Shell increased its dividend by 4% and extended its share repurchases, reflecting investors’ focus on returns amid an uncertain outlook for fossil fuels.