(Alliance News) - A Dutch court on Friday ordered oil giant Royal Dutch Shell PLC to pay compensation in a case brought by four Nigerian farmers who alleged widespread pollution on their land.
After 13 years of legal wrangling, an appeals court in The Hague ruled that Shell's Nigerian branch must pay for damage caused by oil spills.
It also held the Anglo-Dutch parent company Royal Dutch Shell liable for installing new pipeline equipment to prevent further devastating spills in the Niger Delta region.
"Shell Nigeria is sentenced to compensate farmers for damages," the court said.
The amount of damages would be determined later, it said. It did not specify how many of the four farmers would receive compensation.
The farmers first sued Shell in 2008 over pollution in their villages Goi, Oruma and Ikot Ada Udo, in southeastern Nigeria, in a case backed by the Netherlands arm of environment group Friends of the Earth.
"In the Uruma cases Shell Nigeria and...Royal Dutch Shell are ordered to equip the pipeline with a leak detection system so that environmental damage can be limited in the future," the court said.
Shell Nigeria should have shut down oil supplies on the day of the spill in the cases in Goi, it said.
Shell 'A' shares were 0.1% higher in London on Friday at 1,369.20 pence each, while the 'B's shares were 0.3% higher at 1,303.00p.
In January this year, Shell sold its 30% interest in oil mining lease 17, located in the Eastern Niger Delta, for USD533 million.
The 30% interest was sold to TNOG Oil & Gas Ltd, a related company of Heirs Holdings Ltd and Transnational Corp of Nigeria PLC with USD453 million paid at completion with the balance to be paid later.
Shell Petroleum Development Co of Nigeria Ltd, which sold the stake, kept its interest in the Port Harcourt and residential areas that fall within the lease areas.
Other Shell Petroleum Development Co of Nigeria joint venture partners also assigned their interest in the lease, Total SE's Total E&P Nigeria Lts assigning its 10% and Nigerian Agip Oil Co Ltd assigning its 5% interest. This ultimately gives TNOG Oil & Gas Ltd a 45% interest in OML 17.
source: AFP
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