(Bloomberg) -- The UK government said Glencore Plc didn’t conduct appropriate due diligence to prevent and mitigate the effects of a 2018 wastewater spill at one of its oil-producing assets in Chad.
Residents living close to the Badila oil field, which until 2022 was operated by Glencore subsidiary PetroChad (Mangara), have filed a complaint saying that the collapse of a wall holding in wastewater led to the pollution of water systems used for drinking, washing and agriculture.
Glencore could have carried out more effective risk due diligence for the asset, National Contact Point, a unit of the UK’s Department of Business and Trade said on Thursday. The commodities giant provided technical planning, financial and other corporate services to PetroChad (Mangara), including those relating to health, safety and the environment, according to NCP, which monitors how UK companies follow international guidelines.
Glencore said it’s been transparent about the incident.
“We are committed to operating in a safe and responsible manner in accordance with all applicable laws and regulations,” the company said. “We seek to actively manage and mitigate impacts our industrial assets may have on local communities and the environment.”
The spill flooded fields near Badila with 85 million liters (18.7 million gallons) of toxic waste water, which drained into the Nya Pende river, according to a complaint filed in 2020 with the Organisation for Economic Co-operation and Development by RAID, a UK-based non-profit company. The spill caused hospitalizations and the death of livestock, RAID said.
Glencore sold PetroChad (Mangara) in June 2022 to Perenco.
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