Shell Offers $51M to Settle Nigeria Oil Spills

Posted by Greg Trauthwein
Friday, June 20, 2014

Royal Dutch Shell is ready to pay up to 30 million pounds ($51 million) in compensation for two oil spills in Nigeria in 2008 after a London court rejected a larger claim, sources involved in the case said on Friday.

Around 11,000 residents of the Bodo community in the Niger Delta represented by 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 sources said a Shell offer from September 2013 to settle the case for 30 million pounds remained on the table. The lawyer representing the claimants on Friday rejected the sum.

"Shell have consistently sought to underestimate the damage whilst paying only lip service to an apology. These spills, which are some of the largest oil spills in history, have devastated a community of many thousands of people and ravaged the environment," Martyn Day said in a statement.

"The offer of £30m has been offered before and has been flatly refused by our clients who found it insulting and derisory, nothing has changed this view."

The London High Court on Friday rejected the claimants' attempts to expand the scope of the compensation, ruling that the pipeline operator could not be held responsible for damage caused by oil theft.

A trial is planned to start in May 2015 in Nigeria, but Shell urged the claimants to reach a settlement beforehand.

"From the outset, we've accepted responsibility for the two deeply regrettable operational spills in Bodo," Mutiu Sunmonu, Managing Director of the Shell Petroleum Development Company of Nigeria Ltd (SPDC), said in a statement.

"We hope the community will now direct their UK legal representatives to stop wasting even more time pursuing enormously exaggerated claims and consider sensible and fair compensation offers," Sunmonu said.

Massive oil theft, sabotage of infrastructure and leaks from ageing pipelines are cutting into the profits of oil majors operating in Nigeria, as well as damaging the public finances of the African nation.

(Reporting by Ron Bousso; editing by Mark Potter and Keiron Henderson)

Maritime Reporter October 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds


Ocean Installer in BP frame deal

Ocean Installer has been awarded a Regional Framework Agreement with BP for subsea work in the Gulf of Mexico region.   The agreement covers subsea fabrication,

Ulstein Debuts DP Construction Vessel

With the ULSTEIN S182 design, ULSTEIN introduces a new dynamically positioned multipurpose construction vessel suitable for shallow water operations. Main design

USCG Repatriates 12 Migrants

The crew of the Coast Guard Cutter Confidence repatriated 12 Cuban migrants to Bahia de Cabañas, Cuba, Saturday. While on routine patrol a Coast Guard aircraft


Icon Terminates Shipbuilding Contract

Icon Offshore Bhd and its partner FOB Swath Malaysia A/S have agreed to terminate their shipbuilding contract with Denmark-based Danish Yachts AS.    Icon-FOB

Asian Shipping Lines Lowers Fees

China’s National Development and Reform Commission (NDRC) said Japan’s Kawasaki Kisen Kaisha (K Line), South Korea’s Hanjin Shipping, Hyundai Merchant Marine (HMM),

Poland: First LNG Shipment due in Nov-Dec

Poland expects to receive its first cargo of liquefied natural gas at its new LNG terminal at the end of November or early December, the treasury minister was quoted as saying on Sunday.


Egypt Picks 7 Winners in Tender for 55 LNG Cargoes

Seven companies reportedly met with Egyptian Natural Gas Holding Co. (EGAS) to discuss an  liquified natural gas (LNG) tender, including: Vitol, Noble Group, Trafigura,

Floating Tidal Energy Platform Up and Running

The first months of operating the BlueTEC tidal energy platform have been a success, according to the BlueTEC Texel Tidal partnership: with every tidal flow, the

Gas Carrier Concept Stems from Bulker Design

Deltamarin Ltd and Brevik Technology AS, a VARD affiliate, have joined forces to develop a novel multigas carrier design concept that combines the design of Deltamarin’s B.

Marine Science

Cammell Laird to Build Polar Research Ship

The U.K. Government announced Monday that Cammell Laird in Birkenhead has been selected as the preferred bidder to build the nation’s new £200 million polar research ship.

Re-Drawal of High Risk Area in Indian Ocean

The International bodies have agreed to India’s efforts to push back the High Risk Area (HRA) from 78 degrees East longitude to the 65 degrees East longitude.

Naval War College Contributions Recognized

U.S. Naval War College (NWC) leaders and alumni received a warm welcome on Capitol Hill, Oct. 7 during a congressional breakfast organized by Rhode Island Sen.

Maritime Safety

Mooring Safety Improved at Port Taranaki

Scotload, part of James Fisher and Sons plc, has designed and delivered a solution for the monitoring of mooring line stresses at Port Taranaki, a deepwater port in New Zealand.

Value of Fire-damaged Vessel Disputed

Press release - International Transport Intermediaries Club (ITIC) has reported a case in which hull and machinery insurance underwriters instituted proceedings

20 Nations Reinforce their Commitment to Fight Piracy

Senior officers from Australia and 19 other nations attended the Regional Cooperation Agreement on Combating Piracy and Armed Robbery against Ships in Asia (ReCAAP)

Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1438 sec (7 req/sec)