Foreign Oil Companies Sell Off Assets, Locals Left with Pollution and Health Issues
International oil companies are selling their onshore assets in the Niger Delta, moving operations offshore and leaving local communities to deal with severe environmental pollution and health problems.
For over 60 years, international oil companies have extracted oil from Nigeria’s Niger Delta, leading to significant environmental damage. Now, many of these companies are selling their onshore assets and moving operations offshore, raising concerns about the legacy of pollution left behind.
Companies Leaving the Delta:
- TotalEnergies: The French company sold its stake in 15 oil licenses to Chappal Energies for $860 million.
- Eni: This Italian firm transferred its interests in four onshore oil licenses and other assets to Oando in a deal worth at least $500 million.
- Equinor: Norway’s state-owned company handed over its 53.85% stake in block OML 128, including a 20.21% interest in the Agbami oil field, to Chappal.
- ExxonMobil: The American multinational concluded a $1.3 billion asset sale to Seplat, a Nigerian company.
Shell’s Situation:
Royal Dutch Shell, once a dominant player in Nigeria’s oil industry, is also attempting to sell its onshore assets. However, regulatory bodies have delayed approval due to protests from oil-producing communities and activists concerned about environmental cleanup responsibilities.
Environmental and Health Concerns:
The Niger Delta has suffered extensive environmental degradation due to oil spills and gas extraction activities. This pollution has severely impacted the region’s ecosystems, including mangrove forests and water sources, leading to health crises among local communities.
Community Response:
Local communities and rights groups are questioning the cleanup of past environmental damage as international oil companies exit. Critics argue that these companies are shirking their responsibilities by passing the burden to local entities, which may lack the resources to address the pollution effectively.
Future Outlook:
The Nigerian government is in discussions with local communities to restart oil production in regions like Ogoniland, following Shell’s sale of its onshore business. Activists are calling for more dialogue before resuming production and for comprehensive environmental remediation.
The situation in the Niger Delta highlights the need for accountability and sustainable practices in oil extraction to protect both the environment and the livelihoods of local communities.
