Shell disclosed on Friday that it would pay the sum of $15.9 million (approximately N7.1 billion) as compensation to Niger Delta communities that were damaged as a result of multiple pipeline leaks. 4 Niger Delta farmers and an environmental group, Friends of the Earth sued shell in 2008, seeking compensation for lost income from contaminated land and waterways in the communities of Oruma, Goi, and Ikot Ada Udo which were affected by multiple oil spills between 2004 and 2007.
Following 13 years of legal battles, a Dutch appeals court ruled last year that the Nigerian branch of Shell, SPDC must pay reparations for the oil spills, and its parent company is required to install new pipeline equipment in order to prevent any future devastating reoccurrence.
According to the company, in compliance with the court’s orders, SPDC has installed a leak detection system on the KCTL pipeline.
Shell said, “The settlement is on a no admission of liability basis and settles all claims and ends all pending litigation related to the spills”, and the company has on several occasions attributed the cause of the oil spills to sabotage and not poor maintenance.
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