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NGOs Demand TotalEnergies Share Nigerian Oil Secrets
1 Jul
Summary
- Nonprofits sued TotalEnergies in France over Nigerian oil asset sale.
- Sale of Total's 10% stake in the formerly SPDC asset awaits Nigerian approval.
- Lawsuit cites France's duty of vigilance law regarding environmental risks.
Nonprofits including Friends of the Earth France have filed a lawsuit against TotalEnergies in a French civil court. The NGOs are seeking environmental documents related to an onshore Nigerian oil asset that the company plans to sell. This asset, formerly known as SPDC, has experienced numerous oil spills due to various issues, including theft and operational problems.
Nigerian regulators have yet to approve the sale of TotalEnergies' 10% stake in the asset to the local company Vaaris. The lawsuit is leveraging France's corporate duty of vigilance law, compelling companies to address risks like environmental damage. The NGOs aim to review the environmental management plans within the sale agreement, with the potential to file a second suit if they deem them inadequate.
TotalEnergies' CEO has cited difficulties in preventing oil theft as the reason for selling the asset. Despite challenges, acts of sabotage have reportedly decreased following Shell's departure from the asset. The sale requires Nigerian regulators to verify Vaaris's technical and financial capacity to manage the asset and its environmental standards, a point questioned by the NGOs.
