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Shell Agrees to Pay $16 Million Compensation to Nigerian Farmers Over Oil Spills

© AP Photo / Frank AugsteinA Shell logo is seen at a petrol station in London, Tuesday, March 8, 2022.
A Shell logo is seen at a petrol station in London, Tuesday, March 8, 2022. - Sputnik International, 1920, 23.12.2022
In another case, the Federal High Court of Nigeria ordered the multi-national company to pay 800 billion naira ($1.8 billion) to the communities of Egbalor Ebubu in Rivers state, Niger delta region, in compenasation for a spill. Recently, Shell was allowed to appeal the court ruling.
Shell will pay $16 million to four Nigerian farmers and their communities as compensation for harm allegedly was caused by oil pollution after pipeline leaks, a joint statement by the energy firm and activist group Friends of the Earth has said.
The compensation will proceed on the basis of "no admission of liability", and the communities of Oruma, Goi and Ikot Ada Udo will reportedly receive the money.
Despite not admitting liability, the energy corporation was found guilty of the damage caused by a court in the Netherlands last year. The decision was welcomed by the campaigners who noted it was the first time a multinational company was found responsible for the actions of its subsidiary.
Shell denied the allegations, saying that the leaks were caused by sabotage.
The case was started in 2008 by four farmers – Barizaa Dooh, Elder Friday Alfred Akpan, Chief Fidelis A Oguru and Alali Efanga – together with the Dutch branch of Friends of the Earth. The claimants said the spills from underground oil pipelines had cost the farmers means of subsistence, damaging land and waterways.
A picture shows the logo of Anglo-Dutch oil giant Shell  - Sputnik International, 1920, 04.12.2022
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After two of the farmers died, their sons continued the case.
"Thanks to this compensation we can build up our community once again. We can start to re-invest in our living environment," said Eric Dooh, one of the sons after the compensation decision followed.
According to the joint statement by Shell and Friends of the Earth, a leak early detection system was also introduced by the energy firm to prevent further spills, as demanded by the 2021 court ruling.
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