Reps to Halt Shell, Other IOCs Divestment Deals over Pollution, Decommissioning Liabilities
By Ekemini Simon
The House of Representatives Committee on Host Communities has assured that it will stop at nothing to ensure that the sales of oil assets by Shell among other transnational oil companies are halted until the companies come clear in their assets transfer agreement information on who will be responsible for the clean up of legacy pollution and decommissioning liabilities left behind.
The Chairman, House of Representatives Committee on Host Communities, Hon. Dumnamene Dekor, gave the assurance in uyo while speaking to newsmen on the sidelines of a Two-day Retreat/Training of Legislators on Divestment and Host Communities Development Trust organised by Stakeholder Democracy Network (SDN).
Dekor said his committee is disturbed over the fact that the divestment deals taking place in the Niger Delta is not taking into account the interest of the host communities as they have been condemned to continue living in the midst of a badly degraded environment and oil assets that have not been decommissioned while the companies pack their bags and leave.
The Chairman said in all the recent announcements of divestment by transnational oil companies, the companies have been silent on who will be responsible for the legacy liabilities the companies have left behind.
” It has come to a point that we will look at other necessary interventions to ensure that these communities are protected and the environment in these communities are protected. We will stop at nothing to ensure such divestment are put on hold until such a time when the information on who will be responsible for the liabilities are captured in the agreements of transfers”, he stated.
On the failure of some of the companies to incorporate and fund the Host Communities Development Trust in breach of the August 2022 deadline provided by the PIA, the Chairman said the committee is in talks with the affected communities, companies and the regulator; Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to address the issues.
He further assured that the committee is working with NUPRC to ensure that fines against defaulting companies are received by the government.
Dekor who thanked Stakeholder Democracy Network for the training for the House of Representative Committee on Environment, House of Representative Committee on Host Communities, and Senate Committee on Environment said the legislators hope to come up with legislative interventions by way of amendment of some clauses of the Petroleum Industry Act that does not serve right the interest of communities and companies.
On his part, the Chairman, House of Representatives Committee on Environment, Hon.Julius Pondi said in addition to the need for divesting companies to restore the environment before selling off their assets, the federal government must ensure they move beyond the Ogoni clean up to a holistic clean up of the Niger Delta.
He said “The Ogoni clean up is only a pilot project. Every Niger Delta community is a potential Ogoni land. Some communities are worse. We are not carried away by the Ogoni clean up. We will rather thank the Government for starting the process. We urge that this process should not start and end with Ogoni people.”
The Chairman, Senate Committee on Environment, Senator Yunus Akintunde in his remarks noted that most of the companies buying the assets from the divesting companies have not effectively evaluated the liabilities left behind.
Represented by the Clerk of the Committee, Etimbuk Essiet, the Chairman assured that the Senate will collaborate with other relevant committees at the House of Representatives to ensure that the interest of the communities is protected in the divestment deals.
Earlier, the Country Director of Stakeholder Democracy Network (SDN), Florence Kayemba in her welcome remarks said the concerns of how divestment in the Niger Delta is conducted are dire issues that affect all Nigerians and the future generations.
She said the question on who will be responsible for the legacy of pollution and assets left without being decommissioned has remained unanswered.
Kayemba noted that what is also of concern is the irresponsible pattern the companies are using in the implementation of the Host Communities Development Trust by negotiating with the communities what they will pay to fund the trust against the provisions of the PIA which provides for 3 percent of the Operating Expenditure of the company.
The Country Director who said these developments are selfish stressed that they are potential issues that can spark another round of militancy in the Niger Delta hence the reason SDN has gathered the legislators for the retreat in order for the communities to get legislative interventions on the concerns.