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ABUJA, Nigeria — Human rights group Amnesty International on Friday expressed concern about the Nigerian government’s hiring of two firms with past dealings with Shell to assess Shell’s proposed $2.4 billion sale of its onshore Niger Delta assets.
Amnesty International said the choice cast doubt on the independence and transparency of the process and reiterated its call for accountability over the proposed sale.
Amnesty International called Nigeria’s oil regulator’s hiring of Boston Consulting Group (BCG) and S&P Global “worrying”, saying the two firms did business with Shell.
Amnesty International said S&P Global plays a role in Shell’s debt and credit ratings, while Boston Consulting Group provides a variety of services to Shell.
Isa Sanusi of Amnesty International said BCG and S&P could be influenced by commercial interests and be lenient in examining the problems caused by Shell’s activities.
“I don’t think it’s possible for these companies to remain independent,” Sanusi said. “In fact, the entire evaluation of Shell’s plans is now jeopardized by this conflict of interest. There’s no way Shell could be hired to review Shell’s books. I don’t think it’s right.”
In January, Shell announced plans to sell its onshore assets to a consortium of five local companies for $2.4 billion, a move it said would allow it to focus on its more profitable offshore business as it plans to transition away from fossil fuels.
Activists urge Nigeria to reject Shell’s oil sell-off plan
But the proposed sale has raised concerns among environmental and human rights activists, who have called on authorities to delay the deal until a review of Shell’s activities and assets in the region is carried out.
The groups said Shell’s years of exploration activities had caused serious environmental damage and loss of livelihoods.
Energy expert Emmanuel Afimia agreed with Amnesty International, saying: “There is a partnership between these consultants and Shell. This could compromise the consultants’ ability to conduct an impartial review.
“We need to understand that the independence of these advisers is critical to ensuring a fair assessment and their relationship with Shell risks undermining trust in the process,” she said.
Nigerian law requires Shell to provide funds for the cleanup and decommissioning of assets before exiting.
But Shell, like other foreign energy companies, often blames oil spills on sabotage and theft. Earlier this year, the company published on its website a list of eight planned cleanup operations — all of which were for spills of less than 100 barrels.
Amnesty International said there would be huge human rights risks if the right measures were not taken.
“All environmental responsibilities, community responsibilities and human rights responsibilities must be reviewed,” Sanusi said. “Shell must pay this before it sells its assets in the region. This is about people’s lives and this should be the priority for the Nigerian authorities.”
In March, the Dutch nonprofit Center for the Study of Multinational Corporations accused Shell of trying to evade responsibility for the oil spill and warned that if allowed, it could set a negative example for other foreign companies trying to leave the Niger Delta.
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