Shell To Pay N15bn Compensation To NigerDelta Community Over Oil Spills

Shell Petroleum Development Company has
finally agreed to pay a compensation of £55
million (N15.3 billion) for two oil spills that
occurred in Bodo community in Gokana Local
Government Area of Rivers State in 2008.
The company had allegedly offered £30 million
initially, but the community was reported to
have rejected it, making the oil giant present
the new offer.
According to a statement by Shell’s Corporate
Media Relations Manager, Precious Okolobo,
the £55 million settlement agreement provides
for an individual payment to each claimant,
who accepts the settlement agreement in
compensation for losses arising from the two
regrettable spills, amounting to up to £35
million in total. He explained that the
remaining £20 million payment will be made
for the benefit of the Bodo community
generally.
About 15,000 residents of Bodo community,
represented by a UK law firm, Leigh Day, had
in 2011 appealed to a London court to ask
Shell to pay it a compensation of more than
£300 million, for the spilling of 500,000
barrels of oil.
The London High Court had in June 2014
rejected the community’s attempts to expand
the scope of the compensation, as it ruled
that the pipeline operator could not be held
responsible for damage caused by oil theft.
The judgement was however delivered based
on preliminary issues in the suit.
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