…Shell’s Exit Is Not Genuine – A Secret Takeover by Former Executives
By Best Olowo
The Chairman of the Centre for Peace and Environmental Justice (CEPEJ), Chief Sheriff Mulade, has strongly criticized Shell’s decision to exit onshore oil operations in Nigeria, blaming systemic corruption and government failure rather than community hostility.
Speaking on Beyond the Headlines on GbaramatuVoiceTV on Friday, March 14, Mulade warned that Shell’s shift to offshore operations could lead to reduced oversight, environmental degradation, and further exploitation of Niger Delta communities.
According to him, Shell’s departure was driven by the high costs of compensating affected communities and making payments at multiple levels of government. He pointed out that regulatory bodies such as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had a 40% monitoring capacity over onshore operations, but offshore activities are much harder to track.
“Now, production from swamps can be monitored, but offshore cannot be fully monitored,” Mulade said. “It is just like a free flow—the only way to exploit Nigerians is to move offshore.”
Shell’s Exit Is Not Genuine – A Secret Takeover by Former Executives
Mulade dismissed claims that Shell was leaving because of conflicts with host communities, insisting that Niger Delta residents have long supported oil exploration despite its devastating impact. However, he argued that decades of environmental pollution have drastically reduced life expectancy and forced many people to abandon their traditional livelihoods.
“Our lifespan in this area has reduced drastically. You hardly see people living up to 90 or 100 years anymore. Everyone is relocating from host communities to the cities,” he said.
He also exposed Shell’s so-called exit as a cover-up, claiming that former Shell executives had acquired the company’s assets under different names to create an illusion of indigenous ownership.
“It will shock you to know that Shell did not exit onshore. What they have done is a ‘smooth script’—they claim to have exited, but in reality, they have transferred their shares to former Shell staff who registered new companies under indigenous names and bought the assets.”
According to him, this strategy is designed to mislead the people of the Niger Delta into thinking they now control their resources, while the same power structures remain intact.
“They are all former Shell directors. This is just a strategy to convince and confuse the people of the Niger Delta.”
Niger Delta Leaders Must Take Control of Oil Resources
Mulade urged Niger Delta elites to acquire more marginal oil fields and blocks to ensure better local control over resources. He stressed that any company taking over Shell’s assets, including Renaissance Holdings, must take full responsibility for the environmental damage left behind.
“Our environment is our right, our priority, and our heritage. This is the only land we have to live in and hand over to the next generation. We must continue to preserve and protect it.”
While acknowledging concerns that Shell’s exit could impact foreign investment, Mulade expressed confidence that the Niger Delta has the capacity to survive and develop independently.
“The Niger Delta has all it takes to survive, irrespective of which company is leaving. Shell’s exit will create opportunities for better development.”
He also blamed the federal government for neglecting oil-producing communities, accusing officials of prioritizing other regions while allowing the Niger Delta to suffer environmental destruction.
“The federal government has failed Nigerians, especially the Niger Delta. Those in power are from the North, West, and East—their environments are not destroyed, so they don’t care about what happens to us.”
Despite these challenges, Mulade called for stronger leadership and strategic planning within Niger Delta communities to protect their interests.
“We must begin to show leadership qualities in our communities and take control of our own future.”
Background: Shell’s $1.3 Billion Exit from the Niger Delta
Shell PLC on Thursday announced the completion of a $1.3 billion sale of its onshore subsidiary, Shell Petroleum Development Company of Nigeria Ltd. (SPDC), to Renaissance Africa Energy Holdings.
This deal, which had been delayed by regulators, transfers 30% of Shell’s operating stake in the SPDC Joint Venture (JV) to Renaissance. However, the Nigerian National Petroleum Company Limited (NNPC) retains a 55% stake, while TotalEnergies (10%) is in the process of selling its stake to Chappal Energies Mauritius Ltd. for $860 million. Italian oil giant Eni (5%) has chosen to retain its stake after previously selling off its Nigerian Agip Oil Company Ltd. (NAOC) assets to Oando PLC for nearly $800 million.
The SPDC JV includes 15 onshore oil mining leases (OMLs) and three shallow-water OMLs, areas long plagued by oil spills, pipeline vandalism, and environmental degradation.
In an official statement, Shell said the divestment aligns with its long-term goal of exiting onshore operations and focusing on deepwater and gas investments.
“The divestment of SPDC aligns with Shell’s intent to simplify its presence in Nigeria through an exit of onshore oil production in the Niger Delta and a focus on future disciplined investment in its Deepwater and Integrated Gas positions,” Shell stated.
The Nigerian government had previously delayed the sale due to concerns over the ability of the new owners to manage the assets and environmental liabilities. Olu Verheijen, special adviser on energy to President Bola Tinubu, had emphasized the importance of ensuring that new operators have both the technical and financial capacity to manage the assets effectively.
“For the independents who are coming in onshore, we want to make sure they align with our objectives of rapidly growing production,” Verheijen said. “They need to ensure that there is technical and financial capacity and that some of the obligations that need to be addressed are being addressed.”
In April 2024, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) announced that it would assess environmental liabilities before allowing Shell to finalize the divestment.
“The transaction has been designed to preserve the full range of SPDC’s operating capabilities following the change of ownership,” Shell claimed in its official statement.
Foreign Oil Companies Exiting Nigeria
Shell’s exit is part of a broader trend of international oil majors divesting from Nigeria’s onshore sector.
Equinor ASA, a Norwegian state-owned oil company, exited Nigeria in December 2024 after completing a $1.2 billion sale of its 20.21% stake in the Agbami oil field.
Seplat Energy PLC, a Nigerian oil company, acquired Mobil Producing Nigeria Unlimited from ExxonMobil in a deal finalized on December 12, 2024.
TotalEnergies and Eni have also been shifting focus to offshore operations in Nigeria.
Despite these changes, Niger Delta activists like Chief Sheriff Mulade argue that the so-called “indigenous takeover” is a façade, with former executives of international oil companies secretly retaining control.
“These divestments are just a restructuring strategy to deceive the people of the Niger Delta,” Mulade warned.
With Shell’s exit raising new concerns over environmental accountability, foreign investment, and local resource control, Niger Delta communities face a critical moment in their fight for economic and environmental justice.
