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TotalEnergies Taken to Court by Environmental Groups Over Nigeria Oil Asset Sale

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Environmental charity Friends of the Earth France and several other non-profit organizations are taking French energy major TotalEnergies (TTE) to court to obtain clarity on "opaque" sale terms regarding oil assets in the Niger Delta, it said Wednesday.

Friends of the Earth France, along with Hawkmoth, HEDA Resource Centre and Social Action, have turned to a Paris judicial tribunal for clarification on the terms of Total's divestment in the Renaissance joint venture in Nigeria to verify whether the company has complied with its duty of vigilance.

"While the Niger Delta is known to be ravaged by oil exploitation, no information has been made public regarding the guarantees provided for addressing environmental damage and compensating affected people," the statement said.

"The documents, requested through summary proceedings and "before any legal action," would allow organizations to verify whether Total has complied with its duty of vigilance."

About 9-13 million barrels of hydrocarbons have been spilled in the Niger Delta between 1958 and 2010 by oil companies, rendering its land unusable and water unfit for consumption, the statement said.

As per the French law on the duty of vigilance, TotalEnergies is required to show that selling its stake will not further harm the people living near its oil and gas extraction sites and that adequate remediation are in place.

According to the statement, a gradual withdrawal of established energy companies like Shell (SHEL), Total, and Eni from the region is hurting clean-up efforts and the future of affected populations.

In March last year Shell sold its subsidiary Shell Petroleum Development Company, operator of the oil and gas assets held by the SPDC joint venture, to Renaissance Africa Energy, which is now its operator.

The company has contributed to significant hydrocarbon pollution of the Niger Delta over the last 30 years, the statement said.

Shell argues on its website, in detailing a case it is fighting in England over Niger Delta pollution, that illegal oil theft and illegal refining caused most of the spillage, that it has cleaned it up regardless and obtained Nigerian certification of this.

Total subsidiary TotalEnergies EP Nigeria in January reached an agreement for the sale of its 10% stake in the Renaissance JV to Nigerian consortium, Vaaris, while ENI is also looking to sell its stake.

"This withdrawal of major European oil companies, conducted in complete secrecy, is causing serious concern among those most directly affected, as well as local and international associations: no information has been provided regarding guarantees for the remediation of polluted areas and compensation for those affected. The cleanup of the region could therefore be jeopardized," the statement said.

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