By Hagxy Don
The Nigerian government is in advanced discussions with local communities in Ogoniland to restart oil production in the region, following Shell’s $2.4 billion sale of its onshore oil business in the Niger Delta. This move marks the end of nearly 100 years of Shell’s operations in the area, which have been marred by environmental degradation, oil spills, and violent conflicts.
A Historic Transition
Shell’s divestment from its onshore assets in Nigeria is part of a broader shift by international oil companies (IOCs) towards offshore and deepwater operations. The sale, which was finalized in January 2025, saw Shell’s Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), transferring its assets to a consortium of local firms, Renaissance Africa Energy.
In a statement, Shell’s CEO, Wael Sawan, explained the rationale behind the decision:
> “This transaction aligns with Shell’s strategy to focus on high-value, low-carbon projects. We believe the new owners, being locally driven, are in a better position to work effectively with the communities and optimize the potential of the assets.”
The sale includes Shell’s interests in onshore oil fields, pipelines, and infrastructure, a significant portion of Nigeria’s crude production network. However, the Bonny Terminal and Shell’s deepwater assets remain under the company’s control.
With Shell’s exit, the Nigerian government, through the Nigerian National Petroleum Company (NNPC), has initiated talks with local communities in Ogoniland to facilitate the resumption of oil production, which has been dormant for three decades due to environmental activism and conflicts.
Nigeria’s Minister of State for Petroleum Resources, Heineken Lokpobiri, emphasized the economic importance of restarting operations:
> “Ogoniland holds significant untapped crude reserves that can contribute to Nigeria’s revenue and foreign exchange earnings. Our focus is on engaging the communities, ensuring environmental sustainability, and implementing a transparent oil production model that benefits the people.”
The government estimates that over 500 million barrels of crude oil remain in Ogoniland, a key resource that could bolster Nigeria’s dwindling crude output, which has struggled to meet OPEC’s 1.7 million barrels per day (bpd) quota in recent months.
Community Concerns and the Shadow of Past Conflicts
While the government and new operators push for a restart, Ogoni communities remain cautious due to past grievances. For decades, oil spills and gas flaring from Shell’s operations severely impacted local farming and fishing livelihoods, leading to widespread health hazards. The execution of Ken Saro-Wiwa and eight other Ogoni activists in 1995 by the military government further deepened tensions, making the issue of oil production in the region a highly sensitive one.
Legborsi Pyagbara, a former President of the Movement for the Survival of the Ogoni People (MOSOP), warned that oil production must not resume without the full consent of the people:
> “The Ogoni people are not opposed to development, but we will not accept any operation that does not guarantee environmental justice and community benefits. We need proper clean-up efforts, sustainable investment, and a revenue-sharing formula that prioritizes locals.”
The United Nations Environment Programme (UNEP) previously estimated that cleaning up Ogoniland’s pollution could take 25-30 years, yet progress has been slow. Many community leaders are demanding that full rehabilitation efforts be completed before any drilling resumes.
The Road Ahead
The success of oil resumption in Ogoniland will depend on several key factors:
Transparency in revenue sharing: Communities are demanding a fair share of oil revenues for local development.
Environmental restoration: The ongoing UNEP-led clean-up must be accelerated to prevent further damage.
Security and conflict resolution: Avoiding a repeat of past violent clashes between oil companies and community activists.
The federal government has assured that a new community-inclusive framework will be introduced, and all negotiations will prioritize the welfare of the people. With oil revenue being Nigeria’s largest source of foreign exchange, restarting production in Ogoniland is a major economic goal, but one that must be handled with care to avoid rekindling old conflicts.
For now, the people of Ogoniland watch cautiously, waiting to see if history will repeat itself—or if this new era of oil production will finally bring justice and prosperity to the land.
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