Shell to pay €15mn oil spill settlement to Nigeria

Shell Petroleum Development Company of Nigeria Ltd (SPDC) will pay 15 million euros to communities in Nigeria that were affected by multiple oil pipeline leaks in the Niger Delta, according to a statement by the oil company.

Following the judgments of the Court of Appeal of The Hague on 29 January 2021, Shell and Milieudefensie have negotiated a settlement for the benefit of the communities of Oruma, Goi and Ikot Ada Udo in Nigeria, impacted by four oil spills that occurred between 2004 and 2007.

According to the statement, the settlement is on a no admission of liability basis, and settles all claims and ends all pending litigation related to the spills.

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“Under the settlement, SPDC, as operator of the SPDC joint venture, will pay an amount of €15 million for the benefit of the communities and the individual claimants,” the statement said.

“An independent expert has confirmed that SPDC, as operator of the SPDC joint venture, has installed a leak detection system on the 20” lines that form the KCTL Pipeline in compliance with the judgment of the Court of Appeal of The Hague, the Netherlands.”

It further said the parties agree that remediation has been completed and certified by relevant regulatory agencies in Nigeria in accordance with Nigerian law. The parties agree this also follows from the judgments of the Court of Appeal.