Abuja, Nigeria – The Nigerian government has begun negotiations with local communities to restart oil production in the Niger Delta, a region long plagued by environmental degradation and conflict. The move follows Shell’s decision to sell its onshore assets in the country, a shift that could reshape Nigeria’s oil sector and its relationship with host communities.
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For decades, Shell’s operations in the Niger Delta have been marred by oil spills, pipeline vandalism, and tensions with local residents who accuse the company of pollution and neglect. The sale of its onshore business to a consortium of local and international firms is seen as part of a broader exit strategy by foreign oil majors from onshore operations in Nigeria due to security and regulatory challenges.
Nigerian officials say they are working closely with affected communities to ensure a smooth transition and to restart production without exacerbating existing tensions. “We are prioritizing dialogue to secure agreements that will benefit both the new operators and the people living in these oil-producing areas,” a senior government official told Al Jazeera on condition of anonymity.
The discussions come amid concerns over the environmental legacy left by Shell and other foreign oil companies. Many Niger Delta communities have long demanded compensation for decades of pollution, with legal battles still ongoing in both Nigeria and European courts.
Despite Nigeria’s heavy reliance on oil revenue, production has declined in recent years due to theft, sabotage, and a lack of investment in infrastructure. The government hopes that involving local stakeholders in the new phase of production will reduce unrest and improve security for oil operations.
However, analysts warn that without a strong commitment to environmental restoration and community development, tensions could persist. “The government must ensure that this transition does not repeat past mistakes where profits were prioritized over the welfare of the people,” said Nnimmo Bassey, a Nigerian environmental activist.
As Nigeria moves forward with the plan, questions remain over whether new operators will adhere to stricter environmental and governance standards or if the cycle of exploitation and pollution will continue.
