Shell to pay $83.5m for Nigeria oil spill

Fishing community to get compensation for 2008 spills that destroyed thousands of acres of mangroves in southern delta.

    Shell to pay $83.5m for Nigeria oil spill
    The out-of-court settlement averted a full trial at the High Court in London [File: AP]

    Oil giant Royal Dutch Shell has agreed to pay a Nigerian fishing community about $83.5m for the worst oil spill ever suffered in the African nation's southern delta region.

    Wednesday's agreement ends a three-year legal battle in Britain over two spills in 2008 that destroyed thousands of hectares of mangroves and the fish and shellfish that sustained villagers of the Bodo community.

    It "is thought to be one of the largest payouts to an entire community following environmental damage," the claimants' London lawyers, Leigh Day, said.

    The Anglo-Dutch energy giant said it was paying $53.1 million to 15,600 fishermen and farmers and $30.4 million to their Bodo community.

    "We've always wanted to compensate the community fairly," said Mutiu Sunmonu, managing director of Shell Nigeria, which is 55 percent owned by the Nigerian government.

    The out-of-court settlement averted a full trial at the High Court in London and the money has been paid to the claimants' lawyers.

    Shell originally offered $6,000 to the entire community, Leigh Day said.

    Sunmonu said Shell also has agreed and is "fully committed" to a cleanup.

    Chief Sylvester Kogbara, chairman of the Bodo Council of Chiefs and Elders, said he hoped "that Shell will take their host communities seriously now" and embark on a cleanup of all of Ogoniland.

    A UN Environment Programme report has estimated it could take up to 30 years to fully rehabilitate Ogoniland, an area where villagers have been in conflict with Shell for decades.

    Kogbara said the community money will be used to provide needed basic services.

    "We have no health facilities, our schools are very basic, there's no clean water supply," he told The Associated Press news agency.

    Individually, he said villagers are discussing setting up as petty traders and other small businesses until their environment is restored.

    Each person gets 2,200 pounds ($3,340) in a country where the minimum monthly wage is less than $100.


    Shell's Sunmonu insisted that oil theft and illegal refining remain "the real tragedy of the Niger Delta" and "areas that are cleaned up will simply become re-impacted."

    Amnesty International said Shell continues to blame oil theft for spills - which means it does not have to pay compensation - when the company's own documents state its aging oil pipelines present a "major risk and hazard".

    Shell had argued that only 4,000 barrels of oil were spilled in Bodo while Amnesty International used an independent assessor who put it at over 100,000 barrels - considered the largest ever oil spill in mangroves.

    "Oil pollution in the Niger Delta is one of the biggest corporate scandals of our time," said Audrey Gaughran of Amnesty International. She said thousands more people remain at risk because of Shell's failure to fix aging and dilapidated pipelines.



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