$878m Oil Spill Matter: Supreme court grants Shell’s appeal on $878m oil spill matter

Friday Ajagunna
Friday Ajagunna
Shell

The Supreme Court of Nigeria on Friday granted the appeal of Shell Petroleum Development Company of Nigeria Limited (SPDC). It ruled that Shell is entitled to a hearing regarding an alleged oil spill in the Niger Delta, where a lower court had asked the company to pay $878 million.

This follows the Court of Appeal’s ruling suspending an asset sale and its directive to settle a judgment claim before addressing the case.

These were contained in reports by Reuters and Bloomberg.

According to the reports, the apex court ruled that the appellate court did not thoroughly examine the merits of the case and ordered that Shell be given an opportunity for a hearing.

The details of the verdict, read orally on Friday, will be officially documented within seven days, according to undisclosed sources awaiting the publication of the ruling.

It could be recalled that the legal matter, one of various cases against Shell Plc both domestically and internationally, originated from a November 2020 High Court ruling.

The ruling had ordered Shell to pay $878 million to the communities of Egbalor Ebubu in Rivers State for causing an oil spill that resulted in damage to waterways and farms.

According to Reuters, the lawyer to the communities, Mohammed Ndarani, said the Supreme Court has returned the case to the Court of Appeal.

A spokesperson for SPDC Nig in an interview with Bloomberg: “We note the Supreme Court’s judgment on SPDC’s appeal, and we are currently assessing its implications.”

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