‘NUPRC’s consultants work for Shell’ — Amnesty alleges conflict of interest in asset sale

Amnesty International, says the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) must avoid conflict of interest in the proposed sale of Shell’s onshore assets.

In a statement on July 4, Isa Sanusi, director of Amnesty International Nigeria, said the oil regulator has hired Boston Consulting Group (BCG) and S&P Global to assist in scrutinising the sale of Shell’s onshore assets in the country.

Both firms, he said, have existing connections with Shell.

In January, Shell agreed to sell its Nigerian onshore oil assets to Renaissance consortium for up $2.4 billion.

Sanusi said the agency must ensure the full independence of any consultants used to review the proposed sale.

“The government regulator overseeing Shell’s sale of its onshore assets in Nigeria must avoid any perceived conflict of interests by ensuring and guaranteeing the full independence of any consultants it uses to review Shell’s proposed sale of its assets in Nigeria,” Sanusi said.

“The decision by the Nigerian Upstream Petroleum Regulatory Commission to hire BCG, which already performs a wide variety of other work for Shell, to help assess this sale is concerning.

“It is similarly worrying that S&P Global, which also plays a key role in rating Shell’s debt and creditworthiness as well as providing other services to the oil company, is also involved.”

The director said given the enormous “human rights risks at stake”, it is important that reviews of the sale are not just independent — but must be seen to be so.

“Shell must be held fully to account for the oil spills related to the business it is selling, which for decades have polluted the environment, contaminated drinking water and poisoned agricultural land, fisheries and people,” Sanusi added.

“Any assurances from these consultancy groups that their reviews will be divorced from their wider commercial interests with Shell are unlikely to allay worries that they could soft pedal on the remedies required to address the human rights abuses related to Shell’s activities.

“It is also essential that the potential buyers of the business have the ability and financial stability to manage the operations safely and effectively to ensure local communities are not exposed to further harms.”

He also said the deal should not be approved unless a number of measures are in place to fully protect people’s rights.