Business

Finally, Shell to Pay £55m Compensation to Niger Delta Community for Oil Spills

Shell Petroleum Development Company has finally agreed to pay £55 million in compensation for what it described as the two regrettable oil spills that occurred in Bodo community in Gokana Local Government Area of Rivers State in 2008, an indication that the community rejected the £30 million ($51 million) allegedly offered initially by the oil giant.

Shell’s Corporate Media Relations Manager, Mr. Precious Okolobo said in a statement on Tuesday that 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 spills, amounting to up to £35 million in total.
According to him, the remaining £20 million payment will be made for the benefit of the Bodo community generally.

Around 11,000 or 15,000 residents of the Bodo community represented by a UK law firm, Leigh Day appealed in 2011 to a London court for more than 300 million pounds in compensation 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, ruling that the pipeline operator could not be held responsible for damage caused by oil theft.

The court delivered the judgment on preliminary issues raised in the legal action brought against Shell.

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