Shell Accused of Cover-Up as Amnesty Says Company Has $10.9 Billion Decommissioning Liability in Nigeria

Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.

A coalition of human rights and environmental organisations, led by Amnesty International, has accused Shell of knowingly allowing decades of environmental devastation in Nigeria's Niger Delta, citing internal company documents that expose ageing pipelines, missing oil wells, and a staggering internal estimate of $10.9 billion in decommissioning liabilities. The allegations, contained in a new report titled Nigeria: Lifting the Lid, released on Wednesday, July 29, 2026, challenge the oil giant's long-standing narrative that oil theft and sabotage are the primary causes of pollution in the region, pointing instead to systemic neglect, cost-cutting, and a deliberate decision to divest rather than clean up.

The report analyses confidential Shell emails, technical audits, presentations, and internal reviews disclosed during ongoing legal proceedings in the United Kingdom. It paints a picture of a company that was aware of serious integrity failures in its infrastructure but chose to keep oil flowing, prioritising profit over the rights and livelihoods of communities in one of the world's most polluted regions. According to the findings, Shell continued to operate pipelines despite being aware of severe integrity issues, including one ageing pipeline that company officials internally described as "a basket" because of its poor condition. The report alleges that Shell allowed illegal tapping points, known as "bunkering" points, to remain on pipelines because removing them would have required suspending crude oil production, a decision that effectively prioritised revenue over environmental safety.

One of the most financially significant disclosures is an internal estimate placing the cost of decommissioning Shell's onshore assets at $10.9 billion, a figure that excludes environmental remediation and clean-up costs. The documents suggest that Shell was well aware of this enormous liability before it decided to divest its onshore business in 2025 to Renaissance Africa Energy, a move that critics say was designed to offload the financial burden of its toxic legacy onto a less-capable operator. The report also reveals that a separate internal presentation estimated that pollution from Shell's operations had damaged approximately 375 square kilometres of mangrove forest, a vital ecosystem that supports fishing communities and protects coastlines.

The report further alleges that Shell exempted its Nigerian subsidiary, the Shell Petroleum Development Company (SPDC), from aspects of its global health and safety standards to keep oil production running through tampered pipelines. Internal audits uncovered major maintenance backlogs, inadequate oversight systems, and more than 1,600 pipeline repair clamps, some of which are so old that their locations can no longer be verified. Many flowlines scheduled for replacement every 15 years remained in service, with maintenance largely limited to repairing failures after they occurred. A 2014 internal report cited in the report showed that Shell could not verify the location or condition of hundreds of oil wells, prompting a company-wide "well hunt campaign" that reportedly identified 750 overdue maintenance tasks.

The coalition also argued that Shell lacked real-time monitoring systems for many of its pipelines, making it difficult to quickly detect leaks and minimise environmental damage. Internal records cast doubt on the company's attribution of many oil spills to sabotage, noting that staff were not always adequately equipped to distinguish between corrosion-related failures and third-party interference. This distinction is particularly significant because Nigerian law allows compensation for affected communities only when spills are classified as operational failures rather than sabotage. The report also alleges that Shell failed to properly decommission the old Nembe Creek Trunk Line after replacing it in 2010, leaving about 80 kilometres of the old pipeline filled with crude oil due to budget constraints, despite internal warnings that additional spills were likely.

Amnesty International wrote to Shell on July 3, 2026, to share its findings related to the disclosed documents. In response, Shell rejected the characterisation of its operations, stating: "The characterisation and portrayal of Shell in your letter is not one we recognise. Shell is committed to honesty, integrity and respect for people, and to conducting business in an ethical and transparent manner". Shell also argued that the findings do not reflect the "challenging operating environment in the Niger Delta at the time". However, the coalition maintains that the documents cut through years of public denial. "Shell has long blamed oil theft and sabotage for pollution in the Niger Delta. But these documents cut through years of denial and raise grave questions about what Shell knew, what it allowed to continue, and whether it then sought to walk away from the costs of its toxic legacy," said Isa Sanusi, Director of Amnesty International Nigeria.

The report is published by Amnesty International in collaboration with The Corner House, Hawkmoth, HEDA Resource Centre, Kebetkache Women Development & Resource Centre, and Miideekor Environmental Development Initiative (MEDI). The coalition expressed deep concern over Shell's 2025 divestment of SPDC to Renaissance Africa Energy, questioning whether the new operator has sufficient financial capacity to manage the ageing infrastructure and environmental liabilities it has inherited. The organisations warned that without a robust monitoring and enforcement framework, the transfer of assets could leave communities to bear the brunt of future environmental disasters without any recourse.

The revelations in the Nigeria: Lifting the Lid report mark a significant escalation in the long-running battle for environmental justice in the Niger Delta. For decades, communities in the region have suffered from oil spills that have destroyed farmland, poisoned fishing grounds, and contaminated drinking water, while Shell and other oil companies have often attributed the damage to criminal activity. The internal documents now expose a different reality: one where the company was aware of the risks, failed to act, and ultimately sought to walk away from the cleanup. As the international community and Nigerian authorities digest the findings, the pressure is mounting on Shell to take responsibility for a legacy of pollution that has scarred the Niger Delta for generations. The question now is whether the $10.9 billion liability will ever be paid, and whether the communities that have borne the cost of Shell's operations will finally see justice.

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