NIGERIA: Royal Dutch Shell pays out oil spill compensation after three-year legal battle (12/01/15)

Oil giant Royal Dutch Shell has caved in to legal and civil society pressure and agreed to have its Nigerian subsidiary pay out a $83.1 million settlement for a devastating oil spill in 2008 that destroyed water sources and caused environmental degradation. ‘Shell’s Nigerian subsidiary, Shell Petroleum Development Company of Nigeria Limited (SPDC), has announced a £55 million ($83.1 million) settlement agreement with the Bodo community in respect of the two highly regrettable operational spills in 2008,’ the company said in a statement. The compensation, coming after a three-year court battle, includes $53.1 million for fishermen and farmers and a further $30.4 million for the Bodo community in general. ‘From the outset, we’ve accepted responsibility for the two deeply regrettable operational spills in Bodo. We’ve always wanted to compensate the community fairly and we are pleased to have reached agreement,’ said Mutiu Sunmonu, Managing Director of SPDC. Sunmonu said SPDC is ‘fully committed to the clean-up process being overseen by the former Netherlands’ Ambassador to Nigeria. Despite delays caused by divisions within the community, we are pleased that clean-up work will soon begin now that a plan has been agreed with the community.’ However, SPDC insists the spillage and subsequent incidents have more to do with ‘the scourge of oil theft and illegal refining’. ‘It remains the main cause of environmental pollution and is the real tragedy of the Niger Delta, areas that are cleaned up will simply become re-impacted through these illegal activities,’ said Sunmonu. ‘SPDC has made great efforts to raise awareness of the issue with the government of Nigeria, international bodies like the United Nations, the media, civil society and international non-governmental organisations (NGOs), and we will continue to play an active role in the search for solutions. We urge all those with influence, including Bodo community leaders and NGO groups, to support this effort.’ Two oil spills took place on the Bomu-Bonny Pipeline in Bodo in 2008 after operational failure of the pipelines. Three years later, members of the Bodo Community brought claims against SPDC in the UK for environmental pollution. Bodo community council of chiefs and elders chairman, Sylvester Kogbara, was quoted as saying the move by SPDC would ensure the company ‘take their host communities seriously now’ and expressed hope the much delayed cleanup of Ogoniland would now be addressed. ‘We have no health facilities, our schools are very basic, there's no clean water supply,’ Kogbara was quoted saying. It is estimated each of the affected Bodo community member will get a payout of $3340. Shem Oirere