Shell to Pay $15.9m to Nigerian Farmers for Oil Leaks

By Adedapo Adesanya

Shell will pay $15.9 million to communities in Nigeria that were affected by multiple oil pipeline leaks in the Niger Delta.

The oil company on Friday said in a joint statement with the Dutch division of Friends of the Earth.

The compensation to the Nigerian farmers is the result of a Dutch court case brought by Friends of the Earth, in which Shell’s Nigerian subsidiary last year was found to be responsible for the oil spills and was ordered to pay for damages to farmers.

The case was filed in 2008, and the plaintiffs said Shell contaminated their soil, making it impossible for them to earn a living from their work because of the oil spills.

The spills occurred between 2004 and 2007 in three villages in the region; Goi in Rivers State, Ikot Ada Udo in Akwa Ibom State, and Oruma in Bayelsa State.

But the oil firm blamed saboteurs for the leaks in the underground oil pipes that polluted the ecosystem in Niger Delta, where most oil activities take place.

Shell argued that it should not be held legally responsible in the Netherlands for the actions of a foreign subsidiary, Shell Nigeria.

But the court held that the British-Dutch parent company of the energy company could be held liable for any action carried out by its subsidiary, ordering the firm to issue payouts to the farmers.

According to the Court of Appeal in The Hague in January 2021, “Shell Nigeria is sentenced to compensate farmers for damages,” though the exact amount of compensation was not stated. This will be established at a later date.”