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Shell Petroleum Development Company of Nigeria Limited (SPDC), Royal Dutch Shell (RDS) and Obelle Concern Citizens (OCC)
Lead NCPNetherlands
Supporting NCP(s)
DescriptionSpecific instance submitted by an indigenous group concerning alleged non-observance of the Guidelines by Shell Petroleum Development Company of Nigeria Limited (SPDC) and Royal Dutch Shell (RDS)
Theme(s)Concepts and principles, General policies, Disclosure, Human rights, Employment and industrial relations, Environment
Date29 Jan 2018
Host country(ies)Nigeria
SourceOther interested parties
Industry sectorMining and quarrying
StatusConcluded
Summary

Read the final statement published by the Dutch NCP - 27 February 2020


On 29 January 2018, Obelle Concern Citizens (OCC), an indigenous people’s group in Nigeria, submitted a specific instance to the Dutch NCP concerning the Shell Petroleum Development Company of Nigeria Limited (SPDC), a subsidiary of Royal Dutch Shell (RSD), and its links to alleged adverse impacts resulting from a gas fire eruption in 1998. The gas leak impacted farmland and the environment, and the alleged impacts continue to have an effect today.

Initially, the OCC was advised to use the grievance mechanism of SPDC, however, the parties were unable to reach a solution which led the Dutch NCP to offer its good offices in June 2019. The offer of good offices was rejected by SPDC in July 2019, and as a result, the Dutch NCP published its final statement on 27 February 2020.

In its final statement, the Dutch NCP assessed that SPDC failed to demonstrate that its grievance mechanism functions in a consistent manner with the OECD Guidelines and the UN Guiding Principles on Business and Human Rights (UNGPs). The Dutch NCP recommended that SPDC provide more transparency regarding its grievance mechanism. Furthermore, it recommended RDS to use its leverage to develop the SPDC grievance mechanism and to ensure compliance with the OECD Guidelines and UNGPs. Finally, the Dutch NCP recommends that after one year of the publication of the final statement, a follow up evaluation be conducted of the NCP's recommendation.