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You are here: Home / News / International / Oil company prepared to Shell out multi-million dollar compensation package

Oil company prepared to Shell out multi-million dollar compensation package

July 13, 2014 by Rob Hislop Leave a Comment

Royal Dutch Shell is offering more than $50-million in compensation to a Nigerian community.

photo courtesy: AP Photo, Sunday Alamba,

photo courtesy: AP Photo, Sunday Alamba,

were fishermen, but their livelihoods were wiped out as a result of two oil spills six years ago

In 2008, about 300-thousand barrels of oil leaked destroying a thousand hectares of Mangrove swamp channels. About 15-thousand people were affected. They asked for more than $300-million dollars claiming the spill was almost twice as large as stated. However, the London high court rejected the claims made by the community’s UK legal representative to expand the scope of the compensation. The court ruled that the pipeline operator could not be held responsible for damage caused by oil theft.

Shell reported this year that thefts and sabotage at its facilities in Nigeria have increased dramatically in the last three years. On average the company says it loses more than 200-thousands barrels of oil a day as a result of the crimes and ensuing shutdowns.

Shell Nigeria’s MD, Mutiu Sunmonu said the $51-million offer is fair for those genuinely affected by the companies spills. He adds. “Nigeria’s Bodo community should ask their UK Lawyers to stop wasting time pursuing ambiguous claims”.

The current offer averages $3400 per person.

(source: Ventures Africa)

Filed Under: International, News Tagged With: barrels, compensation, oil, oil spill, Royal Dutch Shell, Shell

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