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Shell to pay $111 million over decades-old Nigerian oil spill

Published 11/08/2021, 22:11
Updated 11/08/2021, 22:15
© Reuters. FILE PHOTO: A Shell logo is seen reflected in a car's side mirror at a petrol station in west London, Britain, January 29, 2015. REUTERS/Toby Melville//File Photo
RDSa
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LAGOS (Reuters) - Oil major Shell (LON:RDSa) will pay a Nigerian community 45.9 billion naira ($111.68 million) to settle a case over an oil spill that took place more than 50 years ago, a spokesman said on Wednesday.

The company will pay the Ejama-Ebubu community in Nigeria's Ogoniland the "full and final settlement" to end the case over a spill that took place during the 1967-70 Biafran war.

Nigeria's Supreme Court in November last year denied Shell's bid to challenge a 2010 award of 17 billion naira ($41.36 million), that with accruing interest the community had said was worth more than 180 billion naira.

Shell has said it never got a chance to defend itself against the substance of the claims, and early this year initiated international arbitration against Nigeria over the case.

Shell Petroleum Development Company of Nigeria Limited, in a statement, said it maintained that the spills were caused by third parties during the war, and that it had fully remediated the sites in the Ebubu community.

© Reuters. FILE PHOTO: A Shell logo is seen reflected in a car's side mirror at a petrol station in west London, Britain, January 29, 2015. REUTERS/Toby Melville//File Photo

The company, the most significant international oil major operating in Nigeria, has faced a string of court losses over the past year over oil spills and is in talks with the government to sell its stakes in onshore oilfields.

($1 = 411.0000 naira)

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