A coalition of environmental organisations has sued Shell in a French civil court, demanding access to environmental documents linked to the company’s $2.3 billion sale of its onshore Nigerian oil business, arguing that the divestment could leave unresolved environmental liabilities in the Niger Delta.
The lawsuit, filed on Wednesday by several non profit groups including Friends of the Earth France, invokes France’s corporate duty of vigilance law, which requires large companies to identify, prevent and mitigate environmental and human rights risks arising from their operations.
The groups want the court to compel Shell to disclose environmental management plans contained in the sale agreement with Renaissance Africa Energy Company. They argue that access to the documents is necessary to determine whether Shell has adequately fulfilled its environmental responsibilities before exiting the assets.
If the plans are found to be insufficient, the NGOs said they intend to file a second lawsuit seeking a court order compelling Shell to take further remedial action before the divestment is considered complete.
Shell completed the sale of its 30% stake in the former Shell Petroleum Development Company (SPDC), now renamed Renaissance, earlier this year for up to $2.4 billion, ending nearly a century of onshore oil operations in Nigeria. The company has shifted its focus to deepwater and integrated gas projects.
The assets have long been among Nigeria’s most environmentally challenged oil fields, with hundreds of oil spills caused by crude theft, pipeline sabotage and operational failures. The pollution has triggered costly cleanups, compensation claims and years of litigation against international oil companies.
The lawsuit also comes as other international oil companies continue their exit from Nigeria’s onshore oil sector. TotalEnergies is awaiting regulatory approval to sell its 10% stake in the joint venture to local company Vaaris, while Eni is seeking to dispose of its 5% interest.
NGOs question environmental safeguards
The environmental organisations argue that previous oil asset divestments in Nigeria have failed to include comprehensive plans for environmental remediation, raising concerns that new indigenous operators could inherit polluted assets without sufficient resources to restore them.
The groups specifically want to examine the environmental commitments contained in Shell’s sale agreement. Under France’s duty of vigilance law, they say companies remain responsible for ensuring that their business decisions do not create or worsen environmental harm.
Ken Henshaw, Executive Director of We the People, a Niger Delta based NGO involved in the lawsuit, said none of the major divestments announced so far has provided a clear roadmap for cleaning up decades of pollution.
“None of the divestments so far has involved a blueprint for environmental remediation,” Henshaw said.
He accused Nigerian authorities of prioritising continued oil production over environmental protection.
“The Nigerian government is more interested in how the successor companies will expand the assets and generate more oil for revenues rather than managing environmental issues,” he added.
Questions over buyers’ financial capacity
The lawsuit also raises concerns over whether indigenous companies buying the assets possess the financial and technical capacity to manage environmental obligations.
Environmental groups note that Shell had to provide financing support to Renaissance Africa Energy Company to complete its acquisition of the assets. They also point to repeated delays in the completion of TotalEnergies’ proposed sale to Vaaris, which is still awaiting regulatory approval.
Before approving any divestment, Nigeria’s upstream oil regulator is required to verify that buyers have the financial strength and operational expertise to safely operate the assets and maintain environmental standards.
The NGOs argue that those assessments should include detailed scrutiny of environmental cleanup obligations rather than focusing solely on production capacity.
Broader wave of oil major exits
The legal challenge comes amid a broader retreat by international oil companies from Nigeria’s ageing onshore oilfields, which have become increasingly difficult to operate because of oil theft, pipeline vandalism and security challenges.
Former SPDC, now operating as Renaissance, manages an extensive network of about 4,000 kilometres of pipelines and flowlines, much of which has suffered repeated leaks over the years.
Together, Renaissance Africa Energy, TotalEnergies and Eni own 45% of the joint venture, while the Nigerian National Petroleum Company (NNPC) holds the remaining 55% stake.
The outcome of the French court case could influence how future oil asset sales involving international companies address environmental liabilities and cleanup commitments before ownership is transferred to local operators.
