A Dutch court has ordered the Nigerian subsidiary of Shell to pay compensation over oil spills in Nigeria’s Niger Delta, a ruling which could pave the way for more cases against multinational oil firms.
The Court of Appeal in The Hague on Friday ruled that the Nigerian arm of the British-Dutch company must issue payouts over a long-running civil case involving four Nigerian farmers who were seeking compensation, and a clean-up, from the company over pollution caused by leaking oil pipelines.
The court did not hold Shell’s parent company, which is headquartered in the Netherlands, directly responsible, but ordered it to install a leak detection system on the Oruma pipeline, which has a significant number of spills in the case.
“Shell Nigeria is sentenced to compensate farmers for damages,” the court said in its ruling, which can be appealed via the Dutch Supreme Court.
The amount of compensation will be established at a later date. The court did not specify how many of the four farmers would receive compensation.
Although only Shell’s Nigerian subsidiary was found responsible, the decision could pave the way for more environmental cases against the company.
The case was initiated in 2008 by the farmers and the Friends of the Earth campaign group, who were seeking reparations for lost income from contaminated land and waterways in the Niger Delta region, the heart of the Nigerian oil industry.
The spills concerned were between 2004 and 2007, but pollution from leaking oil pipelines remains a big problem in the Niger Delta.
“Tears of joy here. After 13 years, we’ve won,” the Dutch branch of Friends of the Earth tweeted following Friday’s ruling.
Donald Pols, head of the NGO’s Dutch branch, described the court’s decision as “fantastic news for the environment and people living in developing countries”.
“It means people in developing countries can take on the multinationals who do them harm,” he said.
Shell argued that saboteurs were responsible for leaks in underground oil pipes that have polluted the delta. The company also argued that it should not be held legally responsible in the Netherlands for the actions of a foreign subsidiary, meaning Shell Nigeria.
